We characterize an optimal redistributive pension scheme when individuals face temptation, but can exert costly self-control (as in Gul & Pesendorfer, 2001; 2004). Our results challenge the common wisdom that forced savings tend to reduce individuals' mental cost of self-control. In our model,...

Governments tend to fund universities based on the number of registered students and lump sum transfers. Such policy induces universities to compete for recruiting students, diverting money away from funds devoted to teaching. I show this degradation of quality increases with the degree to which...

I develop a theoretical framework for studying viral communications through a principal agent set-up. The principal derives wealth from a signal in a society while agents in the society talk to each other. A society is likely to create a viral bubble if there is a short loop of positive...