This article develops a model with indivisible infrastructure projects which are too large to operate on regional level due to credit constraints. We investigate the performance of different forms of centralized governments. Our focus is on central legislatures with regional representatives with...

This paper develops a model of similarity-based predictions combined with heterogeneous and endogenous information about population groups. Group-specific evaluations of decision makers endogenously result from former interactions with group members. A priori, no group-specific preferences or...