In many environments, expertise is costly. Costs can manifest themselves in numerous ways, ranging from the time that is required for a financial consultant to study companies’ performances, to the resources necessary for academic referees to produce knowledgeable reports, to the attention and thought needed for jurors to construct informed convictions. The current paper asks a natural question...

We study preferences over opportunity sets. Such preferences are monotone if every opportunity set is at least as good as its subsets. We prove a representation theorem for monotone preferences. The representation suggests that the decision maker optimally contemplates his mood before making his ultimate choice from his opportunity set. We show that our model reduces to that of Kreps (1979) whe...

Alveolar echinococcosis (AE) is caused by the metacestode stage of the fox tapeworm Echinococcus multilocularis. The disease affects the human liver and occasionally other organs and is fatal if treatment is unsuccessful. The present chemotherapy of AE is based on the administration of benzimidazole carbamate derivatives, such as mebendazole and albendazole. Albendazole treatment has been found...

We augment a simple Real Business Cycle model with financial intermediaries that may default on their liabilities and friction generating social costs of default. derive closed-form solution for the general equilibrium economy, providing analytical results. Endogenous generates negative skew aggregate variables positive credit spreads, as documented in empirical literature. Larger frictions str...