The contribution of this project comes from studying how well markets perform in environments in which the economic fundamentals seem to create particularly severe problems for decentralized allocation procedures. These environments include those with public goods, those studied in the literature on imperfectly competitive models of recessions, and cooperative synergies within organizations. The investigator analyzes the rich structure of complementarities in these problems using strategic market games models and determines a fundamental connection common to all of these environments that is related to Ostroy's No-Surplus idea.
