Identification of the strength of human capital externalities at the aggregate level is still not fully understood. The existing method may yield positive or negative externalities even if wages reflect marginal social products. We propose an approach that yields positive average human capital externalities if and only if the marginal social product of workers with above-average human capital e...

We incorporate externalities into the stable matching theory of two-sided markets: We establish the existence of stable matchings provided that externalities are positive and agents’ choices satisfy substitutability, and we show that the standard insights of matching theory, such as the existence of side optimal stable matchings and the rural hospitals theorem, remain valid despite the presence...

Network externalities are playing an increasingly important role in the economy, and they have significant implications for firms' marketing strategies. The authors study the effects of network externalities in conjunction with other product and firm characteristics on the survival of pioneers. They apply an accelerated failure time model to data on 45 office products and consumer durables. The...

The architecture of social and economic networks is often explained in terms of the externalities shaping the link-forming incentives of players. We make two contributions to this literature. First, we bring into its ambit the linear-quadratic utility model. Since players’ utilities are now a function of their network centralities, this permits endogenizing their locational incentives in a netw...

Network externalities are playing an increasingly important role in the economy, and they have significant implications for firms’ marketing strategies. The authors study the effects of network externalities in conjunction with other product and firm characteristics on the survival of pioneers. They apply an accelerated failure time model to data on 45 office products and consumer durables. The...

We consider an auction setting in which bidders, even if they fail to obtain the good, care about the price paid by the winner. We study the impact of these price externalities on the first-price auction and the second-price auction in a symmetric information framework. We establish a distinction between price externalities that do not depend on the identity of the winner and price externalitie...

We derive a necessary and sufficient condition for the existence of equilibria with only two active players in the all-pay auction with complete information and identity-dependent externalities. This condition shows that the generic equilibrium of the standard all-pay auction is robust to the introduction of "small" identity-dependent externalities. In general, however, the presence of identity...

We derive a necessary and sufficient condition for the existence of equilibria with only two active players in the all-pay auction with complete information and identity-dependent externalities. This condition shows that the generic equilibrium of the standard all-pay auction is robust to the introduction of "small" identity-dependent externalities. In general, however, the presence of identity...

Leadership to the challenges of century will demand joint actions society. However, policymakers and social actors should take in mind extent which their generate power externalities. Positive externalities generated by an environmental policy emphasize a way demonstrate potential spillover beneficial effects multiple public policies. The are related private benefits about new consumption or pr...

The benchmark of this paper is the Fujita and Thisse (2002) core-periphery model, which adds a R&D sector with skilled labor to create new varieties for the modern sector. The number of R&D firms increases not only with the number of existing patents and knowledge spillovers but also with the number of skilled workers who can migrate and choose the region offering the better lifetime salary. Th...