I develop two models in which debt repurchases by highly indebted sovereign nations are advantageous for all parties. The models are based on the idea that when sovereign debts are large, bargaining costs are large. Creditors spend more resources convincing the debtor that they are tough when...

Incentives for profitable innovation may be enhanced by employing a "visionary" CEO whose "vision" biases him in favor of certain projects. CEO vision changes which projects get implemented and thus affects the incentives of employees who can be compensated for their innovative ideas only when...

This article surveys the theoretical literature in which people are modeled as taking other people's payoffs into account either because this affects their utility directly or because they wish to impress others with their social-mindedness. Key experimental results that bear on the relevance of...

A setting is considered where consumers keep track of the extent to which brands care about them, which is modeled as altruism of brands toward their target consumers. Consumers who purchase an experience good of high quality reasonably deduce that the supplier of this good is relatively...