In the classic beauty contest story of Morris and Shin (2002), the coordination game is set exogenously in the payoff function of agents. Our paper studies the existence of endogenous coordination in a context with one seller and many buyers. Due to imperfect information, the seller has an...

This article investigates how a privately-informed seller could signal her type by gathering information about the buyer's match value. We study two alternative ways to obtain information. In the first one, labeled information acquisition, the seller can acquire exogenous signals by facing a...

In this paper we analyse a setup where consumers are heterogeneous in the perception of environmental quality. The equilibrium is verified in a setting with horizontal and vertical (green) differentiation. Profits are increasing in the misperception of quality, while, the investment in green...

We estimate a model for exchange rate dynamics when expectations present higher order beliefs. A structural macro model for exchange rates is proposed where agents form their one-step-ahead predictions under a Bayesian learning process and in which aggregation of their choices is considered into...

This paper provides a simply theory to explain the impact of sanctions on a regime's policies and behavior. Sanctions are generally put to strip the target country from its available rents and weaken the government's stance against growing discontent in the population. We show however that...

While focusing on residual control rights, the property rights theory of the firm overlooks that the legal protection of each party's input shapes its ex post bargaining power. By assuming that the property rights on the inputs are selected by a---possibly---benevolent legislator to maximize...

In this paper, we propose an alternative methodology to capture the impact of the inequality factors on poverty by decomposing the traditional Foster-Greer-Thorbecke index. We introduce a frame of decomposition of the Gini coefficient, including the overlapping effects. Our method disentangles...