In a simple public good economy, we propose a natural bargaining procedure whose equilibria converge to Lindahl allocations as the cost of bargaining vanishes. The procedure splits the decision over the allocation in a decision about personalized prices and a decision about output levels for the...

In a simple public good economy, we propose a natural bar- gaining procedure, the equilibria of which converge to Lin- dahl allocations as the cost of bargaining vanishes. The pro- cedure splits the decision over the allocation in a decision about personalized prices and a decision about output...

Jan Eeckhout is a Professor of Economics at University College London and at Barcelona GSE/UPF. Eeckhout's research has been concerned with labor markets, matching and sorting. Philipp Kircher is a Reader of Economics at the London School of Economics. Kircher's research has been concerned with...

Because of sorting, more skilled workers are more productive in higher type firms. They also learn at different rates about their productivity and therefore expect different wage paths across firms. We show that under strict supermodularity there is always Positive Assortative Matching:...

It is well known that a monopolist selling a single good, say a painting, can extract higher rents running an auction-type mechanism rather than posting a fixed price. In competitive markets, for example selling used books on line, price posting is often more prevalent than auctions. While...

This paper analyzes an informal financial institution that brings heterogeneous agents together in groups. We analyze decentralized matching into these groups, and the equilibrium composition of participants that consequently arises. We find that participants sort remarkably well across the...

In a simple public good economy, we propose a natural bargaining procedure whose equilibria converge to Lindahl allocations as the cost of bargaining vanishes. The procedure splits the decision over the allocation in a decision about personalized prices and a decision about output levels for the...