Joint use of resources with usage-dependent cost raises the question: who pays how much? We study cost sharing in resource selection games where the strategy spaces are either singletons or bases of a matroid defined on the ground set of resources. Our goal is to design cost sharing protocols so as to minimize the resulting price of anarchy and price of stability. We investigate three classes o...

We consider the explicit introduction of firms’ choice of location to Varian’s model of sales for a two-stage spatial competition model based on a standard Hotelling’s linear city model. This model is the formalization of Varian’s model of sales in the context of Hotelling’s spatial competition. We obtain three main results. First, we show that there exists a symmetric subgame perfect equilibri...

The note explores a vertical differentiation model with a continuous nonuniform consumers’ distribution. First a result concerning the finiteness property obtained with uniform consumers’ distribution is generalized. Second we prove an existence result of price equilibrium when the distribution is concave. Finally we exhibit a counter-example to the existence of price equilibrium to show that t...

We use a user-cost model to study how dispersed information among housing market participants a¤ects the equilibrium house price. In the model, agents consume housing services, speculate on price changes and are disparately informed about local economic conditions. Information dispersion leads agent to form heterogeneous expectations about housing demand and prices. Optimists, who expect high h...

We consider a pure public goods economy with a continuum of agents. In the standard model, the optimal public good levels will generally be infinitely larger than the private good consumption levels. This does not seem to be a reasonable or even a comprehensible limit of a large economy. We propose instead to model internet and other intellectual content as our canonical public goods. We argue ...

In this paper the standard two-period general equilibrium model with incomplete financial markets is considered. First, existence of equilibrium is proved using a stationary point argument on the set of no-arbitrage prices. Prices are normalized with respect to the market portfolio. The proof does not use the commonly applied normalization on the unit sphere or truncation of the set of prices. ...

We model a market where identical buyers direct their search to identical capacity-constrained sellers. Sellers cannot fully commit to the list price so strategic bargaining may determine the sale price. We study search and pricing behavior in symmetric equilibrium. Sale prices exhibit equilibrium dispersion as they respond naturally to local demand conditions. Uncoordinated search decisions le...

We examine the effects of housing supply constraints on affordability, which we measure directly using quality-adjusted rent as well indirectly structure sizes, lot sizes and household location choices. Empirically, find that have only modest rents consumption despite their larger city growth price to purchase homes. Calibration a dynamic, spatial equilibrium model shows increase price-rent rat...