the incentive to settle and with the proper disagreement jfoint chosen. The results provide a guide for the application of the Nash bar-gaining solution in economic modelling. 1.

and Stephen Trejo for useful comments, and to the National Sci-ence Foundation for research support. 1.

We study the stability and efficiency of social and economic networks, when selfinterested individuals can form or sever links. First, for two stylized models, we characterize the stable and efficient networks. There does not always exist a stable network that is efficient. Next, we show

Abstract—This paper summarizes the current state of the art and recent trends in software engineering economics. It provides an overview of economic analysis techniques and their applicability to software engineering and management. It surveys the field of software cost estimation, including

of factors of production in space-occupies a relatively small part of standard economic analysis. International trade theory, in particular, conventionally treats nations as dimensionless points (and frequently assumes zero transportation costs between countries as well). Admittedly, models descended from

This essay provides a perspective on the trend towards integrating psychology into economics. Some topics are discussed, and arguments are provided for why movement towards greater psychological realism in economics will improve mainstream economics.

This paper examines whether the Solow growth model is consistent with the international variation in the standard of living. It shows that an augmented Solow model that includes accumulation of human as well as physical capital provides an excellent description of the cross-country data. The paper

This paper shows that reciprocity has powerful implications for many economic domains. It is an important determinant in the enforcement of contracts and social norms and enhances the possibilities of collective action greatly. Reciprocity may render the provision of explicit incentive inefficient

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This paper reviews recent research that grapples with the question: What happens after an exogenous shock to monetary policy? We argue that this question is interesting because it lies at the center of a particular approach to assessing the empirical plausibility of structural economic models