Diversification is one of the major components of investment decision-making under risk or
uncertainty. However, paradoxically, as the 2007–2009 financial crisis revealed, the concept …

In this survey article, we report results on the existence of pure-strategy Nash equilibria in
games with an atomless continuum of players, each with an action set that is not necessarily …

How should firms decide whether and when to invest in new capital equipment, additions to
their workforce, or the development of new products? Why have traditional economic models …

This paper develops and analyzes a dynamic stochastic model for a competitive industry
which endogenously determines processes for entry and exit and for individual firms' output …

A crucial challenge for economists is figuring out how people interpret the world and form
expectations that will likely influence their economic activity. Inflation, asset prices, exchange …

Diamond and Dybvig (1983) show that while demand–deposit contracts let banks provide
liquidity, they expose them to panic‐based bank runs. However, their model does not …

We consider linear quadratic Gaussian (LQG) games in large population systems where the
agents evolve according to nonuniform dynamics and are coupled via their individual costs …

This paper considers an economy where labor is indivisible and agents are identical.
Although the discontinuity in labor supply at the individual level disappears as a result of …

High and declining prices signal a high-quality product. High prices are the efficient means
of signaling, because the consequent loss of sales volume is most damaging for lower-cost …

Empirical difficulties encountered by representative-consumer models are resolved in an
economy with heterogeneity in the form of uninsurable, persistent, and heteroscedastic labor …