With the recent special issue of the Journal of Labor Economics on the topic, the concept of monopsony in the labor market seems to have achieved a new respectability as a formulation of wage setting institutions in labor markets. (See Ashenfelter, Farber, Ransom (2010) for a summary.) However, in the "new monopsony" literature, the market environment is not one in which a single buyer faces a ...

This paper describes a pure-exchange, continuous-time economy with two heterogeneous agents and complete markets. A novel feature of the economy is that agents perceive some security returns as ambiguous in the sense often attributed to Frank Knight. The equilibrium is described completely in closed-form. After identifying agents as countries, the model is applied to address the consumption hom...

Abstract: This paper incorporates two side constraints, namely, the link capacity and first-in-first-out (FIFO) constraints, into the dynamic user equilibrium (DUE) problem. Although the link capacity constraint has been addressed in the literature, its implications for the associated multiple-valued dual variables have not been properly drawn out and, thus, the matter is still subject to contr...

This paper describes a class of decentralized dynamic processes designed to converge to equilibrium when the equilibrium equations are linear. These processes can also be viewed as distributed algorithms for solving systems of linear equations, or as learning algorithms. The class includes processes that use a message space larger by one binary digit than the space in which the equilibrium exis...

What is really measured in dynamic calorimetric experiments is still an open question. This paper is devoted to this question, which can be usefully envisaged by means of macroscopic non-equilibrium thermodynamics. From the pioneer work of De Donder on chemical reactions and with other authors along the 20 century, the question is tackled under an historical point of view. A special attention i...

A model of policy formulation is proposed in which the government and the private sector form dynamic coalitions for the purpose of choosing policy actions. However, current players cannot commit their future selves to any particular actions. Defining an equilibrium to be an unblocked sequence of actions, we show that an equilibrium exists and is unique even though, in general, cooperative outc...

We propose two related equilibrium re…nements for voting and agenda-setting games, Sequentially Weakly Undominated Equilibrium (SWUE) and Markov Trembling Hand Perfect Equilibrium (MTHPE), and show how these equilibrium concepts eliminate non-intuitive equilibria that arise naturally in dynamic voting games and games in which random or deterministic sequences of agenda-setters make o¤ers to sev...

System design often explores optimality of performance. What is optimal is, however, often not predefined or static in most cases, because it is affected by the context of operation, such as the environment or external system inputs. In this paper, we formulate the maintenance of optimality of performance in dynamical systems in terms of the standard notion of stabilization. For systems with ob...

The Scarf algorithm was the Þrst practical, almost surely convergent method for computing general equilibria of competitive models. The current focus of much computational research is computing equilibrium of dynamic stochastic models. While many of these models are examples of Arrow-Debreu equilibria, Scarf’s algorithm and subsequent homotopy methods cannot be applied directly since they have ...

In this paper I consider general obstacles to the recovery of a causal system from its probability distribution. I argue that most of the well-known problems with this task belong in the class of what I call degenerate causal systems. I then consider the task of discovering causality of dynamic systems that have passed through one or more equilibrium points, and show that these systems present ...