A recurrent dilemma in team management is to select between a team-based and an individual based wage scheme. We explore such a dilemma in a simple model of production in teams, in which the team members may differ in their effort choices and qualification. We show that, in spite of enhancing...

We analyze the problem of choosing the most appropriate method for apportioning taxes in a democracy. We consider a simple theoretical model of taxation and restrict our attention to piece-wise linear tax methods, which are almost ubiquitous in advanced democracies world- wide. We show that if...

This article studies a model of coalition formation for the joint production (and finance) of public projects, in which agents may belong to multiple coalitions. We show that, if projects are divisible, there always exists a stable (secession-proof) structure, i.e., a structure in which no...