Frontmatter -- Contents -- Preface -- Part I. Introduction -- 1. Made in the World -- 2. Workhorse Models -- Part II. Location -- 3. Contracts and Export Behavior -- 4. Contracts and Global Sourcing -- 5. Contracts and Sourcing: Evidence -- Part III. Internalization -- 6. The Transaction-Cost...

[This item is a preserved copy. To view the original, visit http://econtheory.org/] Dispersion in retail prices of identical goods is inconsistent with the standard model of price competition among identical firms, which predicts that all prices will be driven down to cost. One common...

We examine the implications of arbitrage in a market with many assets. The absence of arbitrage opportunities implies that the linear functionals that give the mean and cost of a portfolio are continuous; hence there exist unique portfolios that represent these functionals. These portfolios span...

An individual with known preferences over lotteries can be led to accept random wealth distributions different from his initial endowment by a sequential process in which some uncertainty is resolved and he is offered a new lottery in place of the remaining uncertainty. This paper examines the...

We show that the use of communications to coordinate equilibria generates a Nash-threats folk theorem in two-player games with “almost public†information. The results generalize to the <i>n</i>-person case. However, the two-person case is more difficult because it is not possible to sustain...

This essay discusses the field of behavioral economics, with a focus on the papers in <i>Advances in Behavioral Economics</i>. These papers show that there is a body of “behavioral facts†that is both economically significant and regular enough to be modeled. For the field to advance further,...