We model the complementarity between informal institutions (communities) and formal institutions (government, market, etc.). Religious beliefs enhance this complementarity, while corruption undermines it.
This paper studies the following two questions:
- How to order heterogeneous items when they are auctioned sequentially?
- Is sequential auction good to use, in terms of efficiency and optimal revenue?
Stable Allocations with Network-Based Comparisons (with Chen Cheng), new version coming soon
Which networks permit stable allocations, when people care about their rankings among their neighbors on the network?
Negotiations are often complex and a deal generally has many aspects. We model such negotiations and identify situations in which efficiency can be achieved, even in the presence of substantial two-sided asymmetric information.