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Auctions and the Price of Art

By Orley Ashenfelter and Kathryn Graddy

Journal of Economic Literature, September 2003

This paper contains a review of the burgeoning new research of the last decade that has been designed to shed light on how the art auction system works, what it indicates about price formation, and how well it performs. We begin with a short description o...

Understanding the Soft Budget Constraint

By ´³Ã¡²Ô´Ç²õ Kornai, Eric Maskin, and ³Òé²¹°ù»å Roland

Journal of Economic Literature, December 2003

We propose a clarification of the notion of a soft budget constraint, a concept widely used in the analysis of socialist, transitional, and market economies. Our interpretation is broad enough to embrace most existing approaches to soft budget constraint ...