In this paper we analyze how biased lotteries can be used to overcome the free-riding problem in voluntary public good provision. We characterize the optimal combinations of bias and lottery prize and the conditions that guarantee efficient public good provision in equilibrium.

We experimentally compare two partnership dissolution mechanisms, the widely-used buy–sell clause and the winner’s bid auction. While standard theory does well in organizing many laboratory patterns, it does not easily capture that many subjects bid valuations, especially in the buy–sell...

Without transparency about peer wages in a real effort experiment, a change of wages does not affect performance. With transparency, however, higher paid workers tend to work more accurately, and lower paid workers shirk more under piece rates.