Household i’s utility maximization problem is to maximize min{xi1 λi1 , xi2 λi2 , . . .} subject to Σlpl[xil − ωil] ≤ 0. It is optimal for i to equalize xil λil across all goods (first note it is strictly optimal to equate this ratio across all goods with a positive price, and then adjust the consumption of the free goods so that their ratio is at least as high as for those goods that are expen...

3D Virtual worlds are computer mediated environments intended for the users to inhabit and interact via their representational avatars. Trading virtual goods in 3D virtual worlds plays an important role in realizing the virtual economy. This essay examines the impact of the unique virtual goods permission settings (Copy, Modify, and transfer) on creators’ pricing strategies. We collect data of ...

Free Trade Agreements (FTAs) usually come with restrictions on the use of intermediate inputs in order for final goods to qualify for free trade. I focus on Rules of Origin (RoO), which limit expenses on nonmember country’s intermediate inputs. In a three-country FTA formation game, I introduce international trade in intermediate inputs and RoO restrictions. In the case of symmetric countries, ...

A wealth of experimental literature studies the effect of repetition and group size on the extent of free riding in the provision of public goods. In this paper, we use data from honor systems for candy bars in 166 firms to test whether such effects can be found outside the laboratory. We find that free riding increases with repetition, and weak evidence that free riding decreases with group si...

The paper is devoted to the study of EU internal market. It was determined that main goals creating an market were stimulate economic growth in region, improve quality and availability goods services, reduce prices. free movement one key freedoms EU's seen as basis policy, it offers producers access member states' markets consumers a wide range goods. historical moments formation are considered...