Behavioral ecology (Krebs 1987) has a rich tradition of calling tradeoffs a cost-benefit. We can synonymize cost-benefit analysis with the notion of a life history trade-off introduced in chapter 3, because in some cases even social system trade-offs have been linked to the pleiotropic effects of one gene on two or more traits. As we will see below, in greenbeard dynamics, which arise from thre...

This paper examines the effects of trade openness on the optimal incentives firms provide to their managers (and hence firm-level productivity) in the new heterogeneous-firm trade framework. Export market selection and firm heterogeneity are shown to be the key determinants of firm owners’ optimal choices of the incentive contracts, which affect the cost-reduction efforts of their managers. I s...

This paper presents a class of examples where a barter economy develops through agents' optimizing decisions into a monetary economy. A barter economy with m commodities is characterized by m(m-1)/2 commodity pair trading posts for active trade of each good for every other. Monetary equilibrium is characterized by active trade concentrated on m-1 posts, those trading in 'money' versus the m-1 o...

he links among trade, technological changes, and worker earnings have been the subject of intense research during the past few decades. The current literature on this subject shows that trade liberalization and technological changes are the main drivers of demand for skilled workers and a rise in the wage premium. In the present article, a panel of 134 Iranian manufacturing industries over the ...

Economic integration lowers one form of trade costs, tariffs, and stimulates changes in other trade costs. This paper offers a model in which integration may raise or lower the important trade cost associated with insecurity. The model can help to explain the varied experience with integration and it points to the usefulness of combining enforcement policy integration with trade policy integrat...