We investigate the existence of a principal-agent problem between parents and financially dependent adult children within households on the purchase of a durable (such as a vehicle). We theoretically argue that children will select more expensive durables if parents contribute more towards its...

We investigate the existence of a principal-agent problem between parents and financially dependent adult children within households on the purchase of a durable (such as a vehicle). We theoretically argue that children will select more expensive durables if parents contribute more towards its...

In the literature related to choice theory an important problem which has been dealt at length is the rationalizability of choice function. In the approach of revealed preference theory the question generally posed is whether it is possible to explain the demand function from the choice...

In this paper, we study, how social relations among the firm owners, employees influence their decision to form R&D collaborations with each other. We consider an oligopoly market set-up with n homogeneous firms. Each firm has a representative individual (owner/manager). We examine, how...

Economic analysis of law hovers around the notion of efficiency. Much of the literature related to tort law go in investigating the properties of efficient liability rules that apportion harm, arising out of interactions involving negative externalities, among the parties. It is well argued that...

In this paper, we propose a connection model for formation of networks having both positive and negative links. We define utility functions of a node and hence of a network by using balanced and unbalanced triads in the network. Further, using those utility functions we define strongly efficient...