This paper focuses on indivisible "multiple-cost-single-benefit " projects that must be approved by the government. A simple mechanism is proposed that ensures an efficient and fair implementation of such projects. The proposed mechanism is appropriate for a unilateral information structure: the...

A common belief is that the IRS pays tax informants 10% of whatever their tips produce in revenue. Actually, the bounty rate is even lower, averaging, in recent years, less than 2% of the amount of taxes and fines recovered. Why is it that the IRS is so tightfisted in rewarding informants who...