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Competitive Markets without Commitment
Time-inconsistency Moral hazard Competitive Markets Adverse selection
2015/7/31
In the presence of a time-inconsistency problem with optimal agency contracts, we show that competitive markets can implement allocations that Pareto dominate those achieved by a benevolent government...
Commitment, Coercion, and Markets: The Nature and Dynamics of Institutions Supporting Exchange
Institutions Supporting Markets
2015/7/20
This chapter’s discussion of market-supporting institutions is geared toward
the issues we know the least about. First, the dynamics of market-supporting
institutions and the implied dynamics of mar...