In an economy with a continuum of individuals, each individual has a stochastic, continuously evolving endowment process. Individuals are risk averse and would therefore like to insure their endowment processes. It is feasible to obtain insurance by pooling endowments across individuals because...

A principal has a stochastically evolving target that he wishes an agent to repeatedly hit with his effort. The agent does not obtain utility from hitting the target and therefore attempts to shirk; the agent's utility is determined by a second process that symmetrically is of no use to the...

This note analyzes settings in which there is McCall-type search, but when searchers accept a job, the job is removed from the distribution of jobs as well as the searcher being removed. The basic intuition is that the best jobs get taken first, a kind of cream-skimming. This leaves a pool of...

A stochastic process impinges on an agent and a principal in distinct ways. From the agent's perspective the process is noise that interferes with his perception of productivity states, leading him to sometimes take actions that are in retrospect mistaken. From the principal's perspective the...