Working Papers

Abstract not available.

This paper studies a dynamic, stationary model of a financial market with a large trader and small noise trader. At each period the large trader receives a privately observed stock endowment, and trades with competitive market-makers in order to…

We construct a non-cooperative dynamic model of time and surplus allocation between partners in a marriage. Partners must choose between allocating time to household public goods production or career activities, and both activities exhibit…

This paper presents an empirical analysis of the value of a coordinated market exchange mechanism. I present a model of efficient trading mechanisms under uncertainty, and develop a measure of the value of an interfirm trade agreement in the…

This paper examines optimal regulatory response to a customer considering bypass: service from an unregulated, fringe supplier. Bypass is costly to a regulator concerned with the allocation of a franchise monopoly’s revenues among consumers. I…

This paper studies a dynamic model of a financial market with some large, strategic traders. These traders are risk-averse and exchange a risky asset for hedging purposes. The only private information in the model concerns their hedging demands.…

The organization of the value chain in the computer industry is undergoing profound change. The nature of this change is caricatured in two contrasting market models. In the “vertical” market model, large vertically integrated vendors of…

This paper studies the economic forces which shape the diversity of an organization over time. We introduce a direct connection between a worker’s attributes (such as gender or cultural background) and her productivity in a given firm.…

This paper is motivated by an often-observed but under-studied phenomenon of the modern business enterprise, management by exception. The term describes the relative infrequency of management interference in the lower tiers of an organizational…

What is the optimal structure of the banking industry? Is it one in which firms have close long-term relationships with a single bank or one in which firms have arms-length relationships with multiple creditors? And what is the effect of…

An analysis of the information model is presented to challenge the assertions that the information model and the notion of correlated equilibrium are consequences of the subjectivist, Bayesian view of uncertainty.

This article analyzes renegotiation in an agency model where a principal observes a noisy signal about the agent’s effort before the renegotiation. This signal is not verifiable by an outsider or is not contractible in the initial contract.…

This paper introduces the concept of strategic learning to explain long run dynamics of strategic behaviors and organizations. Strategic learning is organizational learning which improves the strategic capability of the organization and changes…

This paper examines the impact of foreign direct investment on the transfer of technology to the Republic of China (Taiwan). Using a macroeconomic approach based on aggregate statistical data and a macroeconomic approach based on a questionnaire…

This paper argues that the home, or nonmarket, sector is empirically large, whether measured in terms of the time devoted to household production activities or in terms of the value of home produced output. We also argue that there may be a good…

A series of recent papers have attempted to investigate the issue of how to compensate a salesforce using the agency theory paradigm. These investigations hypothesize various factors to affect the form of the compensation plan defined in terms of…

This paper develops and analyzes a dynamic stochastic model for a competitive industry which endogenously determines processes for entry and exit and for individual firms output and employment. The concept of stationary equilibrium is introduced…

This paper proposes an empirical framework for measuring the effects of entry in concentrated markets. Building on models of entry in atomistically competitive markets, we show how the number of producers in an oligopolistic market varies with…

We first prove that the debt contract is the optimal contract between entrepreneurs and arbitrary financial intermediaries in a model where the bank faces an endogenous bankruptcy penalty (as in Diamond (1984)) - the optimality for depositors has…

Abstract not available.