Showing papers in "Journal of Economic Theory in 1983"

TL;DR: In this article, the seller's valuation and the buyer's valuation for a single object are assumed to be independent random variables, and each individual's valuation is unknown to the other.

TL;DR: In this article, the optimal strategy of the principal is examined in an environment where there are (ex post ) limitations on the maximum penalty that can be imposed on a risk-neutral agent.

TL;DR: In this article, the distribution of a portfolio is determined by its mean and variance if and only if the random returns are a linear transformation of a spherically distributed random vector.

TL;DR: In this paper, the authors study theories of preferences under risk that do not use the independence axiom of the von Neumann-Morgenstern theory and show that preferences are transitive.

TL;DR: The convexity of technology has played a crucial role in economic analyses of optimal one-sector growth problems as discussed by the authors, and two of the key results on the traditional model of Ramsey (1928) that have relied on the convexness of the technology are that optimal intertemporal growth involves moving monotonically towards a unique steady state (as in Cass 1965; Koopmans 1965).

TL;DR: In this article, a dynamical model of industry equilibrium is described in which a cartel deters deviations from collusive output levels by threatening to produce at Cournot quantities for a period of fixed duration whenever the market price falls below some trigger price.

TL;DR: In this article, an attempt is made to account for the frequently observed phenomenon of insurance companies offering discounts to clients who possess a favorable record of past claims, arguing that such discounts provide a mechanism which enables both insurer and insured to counteract the inefficiency which arises from moral hazard.

TL;DR: In this paper, the authors study the investment game in the no-discounting case, which embodies the key features of mobility deterrence and establish the existence of a set of perfect equilibria and suggest that one particular equilibrium is most reasonable.

TL;DR: In this paper, an axiomatic basis is provided for a more general class of non-additive utility indices defined over infinite consumption streams, and this class of utility functions is applied to extend existing results on the nature of optimal growth under uncertainty.

TL;DR: In this paper, it was shown that subgame-perfect equilibria of infinite-horizon games arise as limits, as the horizon grows long and epsilon small.

TL;DR: In this paper, a single-parameter generalization of the Gini coefficient (S -Gini) is presented for income distributions defined in the continuum, and the duality between indices of relative inequality and homothetic social-evaluation functions is exploited to construct these new indices.

TL;DR: In this paper, a characterization of a commonly used measure of income inequality, Theil measure, is presented, which is consistent with the Lorenz criterion, when it applies, and exhibits a simple and empricically useful decomposition by population subgroup into within-group and between-group terms.

TL;DR: In this article, the problem of fair division in situations where the number of agents among whom the division is to take place may vary is considered, and the only solution to satisfy these axioms is the Egalitarian solution, which selects the only feasible alternative that yields equal utilities to all agents and is undominated by any other feasible alternative.

TL;DR: In this paper, the authors generalize the study of nonlinear tariffs, i.e., those depending nonlinearly on the quantity purchased, to the case of a symmetric oligopoly.

TL;DR: In this paper, a non-linear taxation model is presented in which the agents are indexed by a one-dimensional parameter and a method of resolution is proposed to compute the optimal solution.

TL;DR: In this article, the authors present a restriction on the domain of individual preferences that is both necessary and sufficient for the existence of a social choice rule that is continuous, anonymous, and respects unanimity.

TL;DR: In this article, the consumer's problem is transformed into a sequence of two-period Fisherian problems by introducing a "reduced utility function" to ensure full dynamic rationality of the consumer.

TL;DR: In this article, the authors extend the stochastic growth model of Brock and Mirman to allow the production shocks to be correlated over time, and show that the resulting optimal savings and consumption policies depend not only upon the current level of output but also upon the most recent realization of the random shock.

TL;DR: In this paper, the convergence of infinite optimal paths to stationary optimal paths is proved in models of capital accumulation whose discount factors ϱ are near 1, where strict concavity is not required for utility functions and production functions.

TL;DR: In this article, the authors discuss the pricing behavior of a monopolistic producer supplying several quality-differentiated goods by using a model of a Lancasterian characteristic approach with consumer's taste pattern dispersed.

TL;DR: In this paper, a decision rule indicating which innovation should be tried, given any posterior, is derived and used to define an expected diffusion curve for the better innovation, even in the absence of any external demonstration effect, when the distribution of firm priors belongs to a general class.

TL;DR: In this article, Hart's conditions for equilibrium to exist in a securities model where each agent undertakes asset transactions to maximize expected utility of wealth were replaced by a weaker form of Green's "common expectations" (Econometrica 41 (1973), 1103-1124).

TL;DR: In this article, the authors propose a fair choice correspondence model, in which each agent associates to every economy in some initial position a set of final allocations at which the gains from trade have been fairly distributed.

TL;DR: In this article, the possibility for SMSCFs to satisfy both the General Pareto condition and choice consistency conditions strong enough to be meaningful has been doubted, and three reasonable SMSCF that do both is presented.

TL;DR: In this article, a necessary and sufficient condition, involving both the decision model and the CDF change, is derived, which allows the researcher to determine the tradeoff between assumptions on the economic model, and CDF changes, which are necessary and/or sufficient to yield determinate comparative static results.

TL;DR: In this paper, the authors analyze the stability of piecewise continuous differential equations and apply the results to a disequilibrium economic model, and show that stability conditions for each subsystem are neither necessary nor sufficient for overall stability, except in special cases such as a system of linear differential equations in R2 with two regimes separated by a linear boundary.

TL;DR: In this paper, it was shown that if a preference relation on a countable set X has irreflexive transitive closure, then there exists a mapping u of X into R such that x > y entails u ( x )> u ( y ).

TL;DR: In this article, it was shown for the case of private goods economies that every social welfare function satisfying a weak nonimposition condition and the independence of irrelevant alternatives axiom is of one of the following forms.

TL;DR: In this paper, the authors examined the connection between Walrasian equilibria of a limit economy and the non-cooperative (Cournot) equilibrium of approximating finite economies with significant firms.