Consider a committee that in the past has made a promise not to confiscate the profits from a foreign investor. After the investment has taken place, there is a material benefit if the committee decides to default on the earlier promise. But there are also some small moral costs for those who...

This paper extends the axiomatic characterization of contest success functions of Skaperdas (1996) and Clark and Riis (1998) to contests between groups. – Contest ; conflict ; axiom ; group

It can be advantageous for an office motivated party A to spend effort to make it public that a group of voters will lose from party A’s policy proposal. Such effort is called inverse campaigning. The inverse campaigning equilibria are described for the case where the two parties can...

We study the problem of assigning indivisible objects to agents where each is to receive one object. To ensure fairness in the absence of monetary compensation, we consider random assignments. Random Priority, also known as Random Serial Dictatorship, is characterized by symmetry, ex-post...

We design a laboratory experiment to study behavior in a multidivisional organization facing a trade-off between coordinating its decisions across the divisions and meeting division-specific needs that are known only to the division managers. The managers communicate their private information...

While people on all sides of the political spectrum were amazed that Donald Trump won the Republican nomination this paper demonstrates that Trump's victory was not a crazy event but rather the equilibrium outcome of a multi-candidate race where one candidate, the buffoon, is viewed as likely to...

Klassischerweise üben Vertreter der Wirtschaft sich jenseits der unmittelbaren Betroffenheit weitgehend parteipolitischer Enthaltsamkeit. Da sich in der Bundesrepublik mit der Alternative für Deutschland (AfD) eine von ihrer wirtschaftspolitischen Programmatik her liberal-rechtspopulistische...