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The Market for “Lemons”: Quality Uncertainty and the Market Mechanism
This paper relates quality and uncertainty. The existence of goods of many grades poses interesting and important problems for the theory of markets. On the one hand, the interaction of qualityExpand
Economics and Identity
This paper considers how identity, a person's sense of self, affects economic outcomes. We incorporate the psychology and sociology of identity into an economic model of behavior. In the utilityExpand
Labor Contracts as Partial Gift Exchange
This paper explains involuntary unemployment in terms of the response of firms to workers' group behavior. Workers' effort depends upon the norms determining a fair day's work. In order to affectExpand
The Fair Wage-Effort Hypothesis and Unemployment
This paper introduces the fair wage-effort hypothesis and explores its implications. This hypothesis is motivated by equity theory in social psychology and social exchange theory in sociology.Expand
A theory of social custom, of which unemployment may be one consequence
This paper examines adherence to social customs. Models of social customs are found to be inherently multi-equilibrial. It is found that social customs which are disadvantageous to the individual mayExpand
Social Distance and Social Decisions
A model of social distance is presented that is useful for understanding social decisions. An example is constructed of class stability. Agents who are initially close interact strongly while thoseExpand
The Macroeconomics of Low Inflation
THE CONCEPT of a natural unemployment rate has been central to most modern models of inflation and stabilization. According to these models, inflation will accelerate or decelerate depending onExpand
Identity and the Economics of Organizations
The economics of organizations is replete with the pitfalls of monetary rewards and punishments to motivate workers. If economic incentives do not work, what does? This paper proposes that workers'Expand
Procrastination and Obedience
In this lecture I shall focus on situations involving repeated decisions with time inconsistent behavior. Although each choice may be close to maximizing and therefore result in only small losses,Expand