In our model, an agent produces an outcome by a costly effort and then distributes it among heterogeneous users. The agents̕ payoff is the weighted sum of the users ̕shares and the coefficient reflecting their heterogeneity. When the agent neglects users ̕heterogeneity the game leads to an...

We develop a model of two municipalities providing two public services. We show that in case of intermediate level of transferability of public services between two municipalities, Pareto-suboptimal Nash equilibrium exists. In this case, cooperation between municipalities or merging of two...

This paper revisits the standard explanations of the violent Chilean protests of late 2019, and in particular their exclusive focus on the role of inequality, which in fact had been falling prior to the emergence of unrest. Instead, we suggest that blame may lie in a crisis of trust in...