Measures of inequality are used by economists to answer a wide range of questions. Is the distribution of income more equal than it was in the past? Are underdeveloped countries characterised by greater inequality than advanced countries? Do taxes lead to greater equality in the distri-

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

only the intrinsic value of the customer (i.e, the expected pro t from sales to her). We propose to model also the customer's network value: the expected pro t from sales to other customers she may inuence to buy, the customers those may inuence, and so on recursively. Instead of viewing a market

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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.

in the region with larger demand, but the location of demand itself depends on the distribution of manufacturing. Emergence of a core-periphery pattern depends on transportation costs, economies of scale, and the share of manufacturing in national income. The study of economic geography-of the location

The potential usex of public resources and powers to improve the economic stuius of economic groups (such as industries and occupations) are analyzed to provide a scheme of the demand for regulation. The characteristics of the political process which allow relatively small groups to obtain

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

Numerous studies report that standard volatilitymodelshavelow explanatorypower, leading some researchers to question whether these models haveeconomic value.We examine thisquestion by using conditional mean-variance analysis to assess the value of volatility timing to short-horizon investors. We

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.