This paper takes up an important issue from an interchange among Muench (1977), Lucas (1977), and Peled (1982): how to compare consumption allocations in an overlapping generations economy. Rangel and Zeckhauser adopt Muench’s proposed ex ante utility measure for comparing stationary allocations in overlapping generations economies. Muench called it ET-PO (equal treatment Pareto optimality). Eq...

In auctions with private information acquisition costs, we completely characterize (socially) efficient and (revenue) optimal two-stage mechanisms, with the first stage being an entry right allocation mechanism and the second stage being a traditional private good provision mechanism. Both efficiency and revenue optimality require that the second-stage selling mechanism be ex post efficient and...

We show that history-dependence is predicted by the theory of second best in an environment in which money is essential. The economy is hit with iid, aggregate, preference shocks. Due to individual anonymity and lack of commitment, implementable allocations must satisfy participation constraints. Price/output stickiness is an endogenous outcome. It becomes necessary for optimality, in terms of ...

We review the optimality of partial insurance contracts in the presence of moral hazard when consumers are affected by probability weighting. In valuing risky prospects individuals commonly overweight extreme outcomes at the expense of intermediate outcomes; these deviations systematically bias the ex-ante value of insurance. We characterize optimal contracts for the case of perfectly competiti...

We give a necessary and sufficient condition on memory of a player in an extensive game for equivalence between ex ante optimality and timeconsistency (for all payoff assignments). The condition is called A-loss recall and requires that each loss of a player’s memory can be traced back to some loss of memory of his own action. A-loss recall is also shown to be a necessary and sufficient conditi...

This article examines a tradeoff between ex ante preparedness costs and ex post costs of response to a potential introduction of an infectious animal disease. In a simplified case study setting we examine the conditions for optimality of enhanced detection system considering various characteristics of a potential infectious cattle disease outbreak, costs of program implementation, severity of t...

In this paper some basic aspects of the theory of graded consequence are reconsidered, based on many results that appeared since the inception of graded consequences in 1986. Relationships of the notion of graded consequence with the notions of consequence in many-valued and fuzzy logics are discussed. Following this, a detailed study is carried out on the necessary conditions that follow from ...

‎in this paper‎, ‎some kkt type sufficient global optimality conditions‎ ‎for general mixed integer nonlinear programming problems with‎ ‎equality and inequality constraints (minpp) are established‎. ‎we achieve‎ ‎this by employing a lagrange function for minpp‎. ‎in addition‎, ‎verifiable sufficient global optimality conditions for general mixed‎ ‎integer quadratic programming problems are der...

We discuss the classical efficiency criteria in density estimation and propose some variants. The context is a general density estimation scheme that contains the cases of i.i.d. or dependent random variables, in discrete or continuous time. Unbiased estimation, optimality and asymptotic optimality are considered. An example of a density estimator that satisfies some suggested criteria is given...

Preemptively scheduling a set of independent jobs with release time on one processor is a historical problem. In this paper, the same problem has been considered in which objective is to minimize the mean flow time. To prepare a perfect branch-and-bound, some optimality conditions have been represented and they have been compared with the optimality conditions which have been proposed before. O...