In this paper, we study the role and impact of workers' empathy — or the interdependence of workers' preferences — on the business cycle. We show how empathy affects managerial practices and how it impacts labor market outcomes such as wages and employment. To this end, we consider a labor...

This paper examines the optimal bundling strategies of a multiproduct monopoly in markets in which a seller cannot monitor and thereby restrict the purchases of buyers to a single bundle, while buyers have resale opportunities. In such markets, the standard mechanism through which bundling...

In this paper we develop a framework to study markets with heterogeneous atomic traders. The competitive model is augmented as we provide traders with correct beliefs about their price impacts to define equilibrium with endogenously determined market power and show that such equilibrium exists...