We consider the design of a contest in which the prize may motivate not only productive efforts, but also some damaging aggressive behavior by contestants. The organizer must choose prizes and an enforcement regime defined as a limit on how much aggressiveness will be tolerated and the...

We consider the design of a contest in which the prize may motivate not only productiveeffort but also some damaging aggressive behavior by contestants. The organizer must chooseprizes and an enforcement regime defined as a limit on how much aggressiveness will betolerated and the probability of...

We explore mechanisms driving enforcement spillovers - when sanctions at one entity influence behavior at other entities. Our model illustrates when spillovers arise from a regulatory channel and when they arise from a channel not emphasized in the existing literature: product markets. Using...

We examine precautionary behavior, specifically compliance with environmental regulations, pollution abatement, and care spending, by firms facing two sources of insolvency risk. If poor profit or a realized environmental liability triggers insolvency, then the firm forgoes a profitable future....