We study the efficient mechanism for downsizing the public sector focusing on adverse selection in productive efficiency. Each agent is assumed to have two type-dependent reservation utilities: the status quo utility in the public sector before downsizing and the utility that he expects to...

A theoretical model of sequential first-price auctions where bidders are risk-averse and values are affiliated is developed. For constant risk-aversion utility functions and a particular specification of affiliation, closed-form solutions for the symmetric equilibrium of a sequence of k...

This paper shows how the instruments of incentive theory can be used to develop some views about the proper design of governments to avoid the capture of politicians and bureaucrats by interest groups.

This paper studies to what extent economic integration, or globalization, influences the accountability of politicians, In a framework the politicians are only controled through reelection rules, we study the effect of economic integration on the reelection rules chosen by the voters and try to...

This article suggests that the global inefficiency which generally affects a production process is endogenous and depends on the incentives generated by the process environment. We propose to treat the usual correlation between the inefficiency and the regressors of the production frontier...

The paper reviews some recent theoretical contributions on the modelisation of time-inconsistent preferences, as well as implications for individual behavior. The focus is on the interpretation of the concepts and the link with concepts in psychology.

We study in this paper how the technological flexibility choices and equilibrium configurations depend first on the industry characteristics (demand function and cost parameters specific to the multiproduct flexible technology and to the product dedicated technologies) and, second, on the...

Rationalization of U.S. freight railroads following the Staggers Rail Act of 1980 had led to lower real rates for many agricultural and industrial shippers, but has also been accompanied by increasing industry concentration and (more recently) merger-related service disruptions. This has led...