The concept of 'the core' originates in cooperative game theory and its introduction to economics in the 1960s as a basis for proofs of existence of general equilibrium is one of the earliest attempts to use game theory to address big questions in economics. Discovery of the core was met with...

We study two-sided many-to-one matching markets with transferable utilities, e.g., labor and rental housing markets, in which money can exchange hands between agents, subject to distributional constraints on the set of feasible allocations. In such markets, we establish the efficiency of...

Equilibrium assumptions posit relations between different people's beliefs and behavior without describing a process that causes these relations to hold. I show that because equilibrium models do not describe a causal process whereby one endogenous variable affects another, attempts to decompose...

The goal of this paper is to establish a general fixed point theorem for upper semicontinuous set-values mappings in p-vector spaces ( p in (0, 1]), which include topological vector spaces as a special class. These new results provide an answer to Schauder conjecture in the affirmative under the...

An economy with a finite number of agents and a finite number of states is considered. An exogenous institutional rule prescribes what moves from one state to another are feasible to each coalition. At each time an agent is called to act with some exogenous probability, and he chooses a...

The paper examines the behaviour of ?evolutionary? models with epsilon-noise like those which have been used recently to discuss the evolution of social conventions. The paper is built around two main observations: that the?long run stochastic stability? of a convention is related to the speed...

The paper criticizes the conception of value on behalf of the conventional economic theory, blaming it for the current economic school’s incapacity to explain the actual economic crisis and to offer an adequate perspective to settle a solution. It proposes an explanation based on the tendency...

The conflict between the income based and nutrition based estimates of poverty is a widely debated issue in economic literature. This paper, using a two commodity framework, attempts to show that in presence of inequality, a status driven utility function can reconcile the conflict between the...

The paper criticizes the conception of value on behalf of the conventional economic theory, blaming it for the current economic school’s incapacity to explain the actual economic crisis and to offer an adequate perspective to settle a solution. It proposes an explanation based on the tendency...

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...