The paper studies simple strategies of labor tax reform in a search and matching model of the labor market featuring endogenous labor supply. Changing the composition of the tax wedge—that is, reducing a payroll tax and increasing a progressive wage tax such that the marginal tax wedge remains unaffected—increases employment, reduces the equilibrium unemployment rate, and increases public reven...

Previous research on the feeling of "face" has long described "face" as a complicated phenomenon in Confucian societies. Indeed, the feeling of face is highly context dependent. One may have very different (having or losing) face perception if the same face event occurs in a different context. To better capture the features of how face is felt, effects on possible responses need to be considere...

We analyze the following questions under imperfect labour markets. How does strategic outsourcing influence wage formation, profit sharing and employee effort when firms commit to optimal profit sharing before wage formation or decide for profit sharing after wage formation? What is the relationship between outsourcing, profit sharing, and equilibrium unemployment? We find that in both scenario...

We build an infinite-horizon dynamic deterministic general equilibrium model with imperfect markets (because of borrowing constraints), in which heterogeneous agents invest in capital or/and financial asset, and consume. There is a representative firm who maximizes its profit. Firstly, the existence of intertemporal equilibrium is proved even if aggregate capital is not uniformly bounded. Secon...

This paper analyzes the role of communication between firms in an infinitely repeated Bertrand game in which firms receive an imperfect private signal of a common value i.i.d. demand shock. It is shown that firms can use stochastic, inter-temporal market sharing as a perfect substitute for communication in low demand states. Therefore, partial communication in high demand states is sufficient t...

CONTEXT During different planning periods, human resources factor has been considerably increased in the health-care sector. AIMS The main goal is to determine economic planning conditions and equilibrium growth for services level and specialized workforce resources in health-care sector and also to determine the gap between levels of health-care services and specialized workforce resources i...

In 1950, John Nash contributed a remarkable one-page PNAS article that defined and characterized a notion of equilibrium for n- person games. This notion, now called the "Nash equilibrium," has been widely applied and adapted in economics and other behavioral sciences. Indeed, game theory, with the Nash equilibrium as its centerpiece, is becoming the most prominent unifying theory of social sci...

Biology has moved from a bench-based discipline to a bioinformational science in modern times but application of computational and analytical methods of informatics in it is still a problem for many researchers and students of biology. We suggest to integrate cost effective and practical combination of the real and the virtual laboratories into the undergraduate biological science curriculum. T...

We use a duopoly model of non-drastic innovation with production differentiation to examine the sequential pricing and simultaneous purchase decisions of an experimental use license in a three-stage game. In equilibrium, the technologically advantaged firm will purchase a license while the technologically disadvantaged does not (regardless of the order of pricing decisions). While efficiency re...

This is the first paper on consumer search where the cost of going back to stores already searched is explicitly taken into account. We show that the optimal sequential search rule under costly second visits is very different from the traditional reservation price rule in that it is nonstationary and not independent of previously sampled prices. We explore the implications of costly second visi...