As a central motivating example, we consider a policy maker facing a cross-section of markets in which …rms play an entry game. Her theory is Nash equilibrium and it is incomplete because there are multiple equilibria and she does not understand how equilibria are selected. This leads to partial identi…cation of parameters when drawing inferences from realized outcomes in some markets and to am...

This paper derives Pareto efficient policy rules for the provision of national as well as global public goods in a two-country world, where each individual cares about relative consumption within as well as between countries. Furthermore, we compare these policy rules with those that follow from a non-cooperative Nash equilibrium. The results show that both global and national public goods are ...

The Chinese Wall policy was identiied and so named by Brewer and Nash 2]. This policy arises in the nancial segment of the commercial sector, which provides consulting services to other companies. Consultants naturally have to deal with conndential company information for their clients. The objective of the Chinese Wall policy is to prevent information ows which cause connict of interest for in...

The Chinese Wall policy was identi ed and so named by Brewer and Nash [2]. This policy arises in the nancial segment of the commercial sector, which provides consulting services to other companies. Consultants naturally have to deal with con dential company information for their clients. The objective of the Chinese Wall policy is to prevent information ows which cause con ict of interest for i...

The Chinese Wall policy was identi ed and so named by Brewer and Nash [2]. This policy arises in the segment of the commercial sector which provides consulting services to other companies. Consultants naturally have to deal with con dential company information for their clients. The objective of the Chinese Wall policy is to prevent information ows which cause con ict of interest for individual...

The Chinese Wall policy was identiied and so named by Brewer and Nash 2]. This policy arises in the segment of the commercial sector which provides consulting services to other companies. Consultants naturally have to deal with conndential company information for their clients. The objective of the Chinese Wall policy is to prevent information ows which cause connict of interest for individual ...

A perfectly rational decision-maker chooses the best action with the highest utility gain from a set of possible actions. The optimality principles that describe such decision processes do not take into account the computational costs of finding the optimal action. Bounded rational decision-making addresses this problem by specifically trading off information-processing costs and expected utili...

This paper studies optimal monetary and fiscal policy in a stochastic economy with sticky prices and monopolistic competition on its product markets. Our main objective is to characterize optimal time-consistent (Markov) policies and to compare their characteristics to the ones implemented by a Ramsey policy maker. We perform this comparison within the framework of a stochastic production econo...