An emerging labor economics literature studies the consequences of firms exercising market power in local markets. These monopsony models have implications for trends earnings inequality. The extent this is likely to vary across In choosing what live and work in, workers trade off wages, rents amenities. Building on Rosen/Roback spatial equilibrium model, we investigate how existence affects cr...

In many auctions, bidders do not have enough cash to pay their bid. If bidders have asymmetric cash positions and independent private values then auctions will be inefficient. However, what happens if bidders have access to financial markets? We characterize efficient auctions and show that in an efficient auction the information rent that a bidder earns depends generally on both his valuation ...

A 2 2 2 model with endogenous process innovation describes two regimes for international technology transfer: multinational enterprise, in which the innovating rm receives all rents from foreign and domestic use of the innovation, and piracy, in which some are all of the rents are kept in the technology-receiving country. Piracy increases the unit requirements for the factor which is scarce in ...

We study an overlapping generations version of the principal-agent problem, where incentive contracts are determined in general equilibrium. All individuals are workers when young, but have a choice between becoming entrepreneurs or remaining workers when old. Imperfections in the credit market give rise to rents in entrepreneurial activities involving capital. These rents motivate poor young a...

This paper considers why "rms often ban monetary exchange between their employees, while encouraging these trades through other means, such as through the reciprocation of favours or barter. Despite classical ine$ciencies associated with non-monetary exchange, we illustrate two themes as to why non-monetary trade may be preferred to allowing money. First, the use of non-monetary trade may a!ect...

We adapt formal models of competition with differentiated products to address the evolution of market boundaries, resource rents, and competitive positions. Our model captures the central strategy insight that competitive interactions are governed by superior value creation and competitive advantage. More importantly, it shows how the interplay between improving technologies and consumers’ valu...

The traditional rental adjustment equation is ̄ awed in that the equilibrium paths for the adjustm ent of rents and vacancy rates cannot hold simultaneously over time. This paper suggests a two-equation model of rental adjustm ents based on adaptive expectation s rather than the single-equation model presen ted in the traditional literatu re, and provides empirical tests. Annual data from the ho...