This dissertation addresses two topics on market imperfections. First, chapter
2 presents a theoretical model that focuses on problems associated with informational
asymmetry. The model presents a dynamic signaling game between a monopolist
manufacturer and a monopolist retailer, where demand is uncertain and only the
retailer is privately informed. This...
In November 1990, Oregon voters approved Ballot Measure 5,
placing an ultimate ceiling on local property tax rates of 1.5% of
market value (excluding specific levies for capital expenditure). Any
resulting shortfalls in local education revenues are to be made up by
transfers from state funds, at the expense of...
The success of the U.S. government in persuading Japan to
liberalize the beef market is viewed as a relief to the U.S.
beef industry. The economic benefit (to the U.S. beef
producers!) of the trade liberalization however is yet to be
seen. The size of this benefit is determined, among...
In explaining why service prices differ across countries
(both developed and developing countries), most studies have
paid attention to the role of structural variables such as
population, trade balance, resource abundance etc., by using
a full employment assumption. Due to the existence of high
urban unemployment in developing countries, the...