This paper studies how electoral incentives influence the outcomes of political negotiations. It considers a game between two political parties that have to bargain over which policy to implement. While bargaining, the parties' popularity varies over time. Changes in popularity are partly...

I study the problem of a durable goods monopolist who lacks commitment power and whose marginal cost of production varies stochastically over time. I show that a monopolist with stochastic costs usually serves the different types of consumers at different times and charges them different prices....

I study how the arrival of new private information affects bargaining outcomes. A seller makes offers to a buyer. The buyer is privately informed about her valuation and the seller privately observes her stochastically changing cost of delivering the good. Prices fall gradually at the early...

Voters in India are often perceived as being biased in favor of parties that claim to represent their caste. We incorporate this caste bias into voter preferences and examine its influence on the distributive policies and corruption practices of the two major political parties in the North...

We model a situation in which two countries are involved in a dispute. The dispute can end in a peaceful settlement, or it can escalate to war. If it is common knowledge that the countries are strategically rational, then the only equilibrium outcome of the model is peace. If, on the other hand,...

We show that contemporary differences in political attitudes across counties in the American South trace their origins to slavery’s prevalence more than 150 years ago. Whites who currently live in Southern counties that had high shares of slaves in 1860 are more likely to identify as a...