This paper studies the existence of single-price price equilibrium from a given initial distribution of money holdings in a search-theoretic model of money where agents have no time preference. The model is similar to recent models (Green and Zhou [2] and Zhou [5]) of search economies with no constraints on money inventories, except that here money is modeled as indivisible and traders are assu...

This article defines and analyzes a ‘‘sparse max’’ operator, which is a less than fully attentive and rational version of the traditional max operator. The agent builds (as economists do) a simplified model of the world which is sparse, considering only the variables of first-order importance. His stylized model and his resulting choices both derive from constrained optimization. Still, the spa...

Recently, a growing literature, known as the new classical economics, attempts to resurrect the classical economic thoughts on division of labor within an analytical framework inherited from neoclassical economics. The paper inspects the feasibility of this approach and finds that the current analytical framework of the new classical economics is not able to spell out how individuals’ decisions...

Article history: Received 17 September 2011 Received in revised form 30 October 2013 Accepted 31 October 2013 Available online 7 November 2013 This paper examines whether a casino tax is good for local welfare in a tourism economy. We find that what is important for efficiency is not the tax rate itself but the tax incidence on tourists. Casino tourism in Macao engages in price discrimination v...

Meson masses within the model of induced nonlocal quark currents. Abstract The model of induced quark currents formulated in our recent paper (Phys. Rev. D51, 174) is developed. The model being a kind of nonlocal extension of the bosonization procedure is based on the hypothesis that the QCD vacuum is realized by the (anti-)self-dual homogeneous gluon field. This vacuum field provides the analy...

A collapse in international trade following the 2007-08 crisis has underscored many dangers of globalization and renewed interest in trade protectionism, one form of which is import quotas. The analysis of import quotas is predominantly based on a static model, which is unable to capture the fact that a quota is imposed over a period of time. This article develops a continuous-time model that i...

In this paper, we respecify à la Cournot-Walras the mixed version of a model of noncooperative exchange, originally proposed by Lloyd S. Shapley. We first show that this respecification has a Cournot-Walras equilibrium allocation, which does not correspond to any CournotNash equilibrium of the mixed version of the original Shapley’s model. As this is due to the intrinsic two-stage nature of the...

Large and regular seasonal price fluctuations in local grain markets appear to o↵er African farmers substantial inter-temporal arbitrage opportunities, but these opportunities remain largely unexploited: small-scale farmers are commonly observed to “sell low and buy high” rather than the reverse. In a field experiment in Kenya, we show that credit market imperfections limit farmers’ abilities t...

This paper, in a Shapley-Shubik market game framework, examines the effect of “leakage” of information: private information becoming available to uninformed traders at a later date. We show that (a) If information acquisition by the informed traders is costless, this leads to faster revelation of information; (b) If information acquisition is costly, there may be no acquisition of information; ...

We present an equilibrium model of a moral-hazard economy with a very large firm and financial markets, where a stock and bonds are traded. We show that optimal contracts necessitate the principal to forbid the agent to trade the stock, and that moral hazard problems can result in low interest rates and sometimes in high equity premium. We also obtain a number of striking results: the second be...