We study the Mas-Colell bargaining set of an exchange economy with differential information and a continuum of traders. We established the equivalence of the private bargaining set and the set of Radner competitive equilibrium allocations. As for the weak fine bargaining set, we show that it...

We fully characterize the preferences relations that can be represented by a utility. Representation is equivalent to the condition that preferences do not have too many "jumps". A characterization of preferences that can be represented by a continuous utility follows trivially from our...

An analysis of the disease of formalism in modern economics. Its manifestation in general equilibrium theory, game theory, the new classical macroeconomics and real business cycle theory. Symptoms of the disease in the current vogue for postmodernism in methodololy. The possibilities for curing...

The rational expectations equilibrium (REE), as introduced in Radner (1979) in a general equilibrium setting à la Arrow–Debreu–McKenzie, often fails to have desirable properties such as universal existence, incentive compatibility and efficiency. We resolve those problems by providing a new...

This Paper considers the efficiency and convergence properties of dynamic processes of social and economic interactions, such as exchange economies, multilateral negotiations, merger and divestiture transactions, or legislative bargaining. The key general feature of the economy is that agents...

The article is concerned with understanding the impact of social preferences and wealth inequality on aggregate economic outcomes. We investigate how different manifestations of other-regarding preferences affect incentive contracts at the microeconomic level and how these in turn translate into...

Inequality in South Africa is the enduring legacy of racial discrimination. We use a dynamic perspective to show the linkages between persistent effects of discrimination in the labour market and the efficacy of redistributive fiscal policy in reducing inequality. We present a machine-learning...

We develop a quantitative framework in which income inequality arises endogenously in response to productivity shocks. The framework accommodates sectoral inputoutput linkages, arbitrary elasticities of factors and intermediates, and heterogeneous workers that endogenously choose to supply their...

Money throughout the world has been operating without a defined denominator. Currency names identify nationality but not value. Equal work time is now and has been the center line of gravity of currency exchange rates since the IMF began publishing the data to see it, since 1948. Adoption of an...

We discover that letting agents pairwise sequentially exchange at "wrong" prices has a robust effect on prices at convergence. If the initial relative price for a good is cheaper than the equilibrium walrasian price due to initial endowments, the initial excess demand effect pushes resource...