Nöldeke and Samuelson (1993) investigate a stochastic evolutionary model for extensive form games and show that even for games of perfect information with a unique subgame perfect equilibrium, non-subgame perfect equilibrium-strategies may well survive in the long run even when mutation rates tend to zero. In a different model of evolution in the agent normal form of these games Hart (2002) sho...

This paper, prepared for the forthcoming The Social Economics Handbook (Jess Benhabib, Alberto Bisin and Matthew Jackson, editors, Elsevier Press), surveys recent work on the evolutionary origins of preferences. We are especially interested in the circumstances under which evolution would push preferences away from the self-interested perfectly-rational expected utility maximization of classica...

In prior literature, bidders’ budget constraints have been shown to change revenue and efficiency rankings among auction formats. These results, however, are based on the implicit assumption that the nature of the budget constraint is unaffected by auction rules. I extend the standard symmetric model of auctions for a single good to include principals responsible for deciding on the bidder’s bu...

This paper argues that international trade should affect local organization of production in a systematic way. By using the standard Heckscher-Ohlin-Samuelson model we show that the export sector is more likely to demonstrate fragmentation, entrepreneurship and outsourcing compared to the importcompeting sector in a typical labor abundant country. Liberal trade regime will promote entrepreneurs...

Past attempts to generalise the Stolper-Samuelson Theorem have used a matrix of real income terms which is sufficient but not necessary to define a change in utility. In contrast, one can define a second matrix of terms which are necessary and sufficient for a change in indirect utility. Using this matrix, the paper presents an extension of the Stolper-Samuelson Theorem to a model of any dimens...

This paper presents a new empirical strategy for estimating the effects of trade policy on domestic factor prices when policy endogeneity is suspected. Absent income effects on factor supplies or domestic prices, the coefficient on the terms of trade can provide an unbiased estimator of the effect of trade barriers on the factor distribution of income for a small economy. In the more general ca...

This paper is a response to Røpke’s (1994) question whether environmental taxes increase or decrease the volume of international trade. Using a three-country Heckscher–Ohlin–Samuelson model, it is shown that the effect can be in either direction. In the absence of pollution haven and three-country effects that reverse natural comparative advantage, environmental taxes decrease (increase) the vo...