This dissertation deals with the topic of bailouts in federations. Institutions and instruments helping to alleviate the incentive problems arising from bailouts are analyzed. In particular, the role of the timing of elections, bailout restrictions and the exploitation of budgetary information...

Commitment problems are inherent to non-binding conflict resolution mechanisms, since an unsatisfied party can ignore the resolution and initiate conflict. We provide experimental evidence suggesting that even in the absence of binding contractual agreements individuals often avoid conflict by...