We study the design of a team in multi-team contests.Is it better to distribute prizes among players equally, or to just one player? And is it better to spend a budget on a diverse team with stars and rookies, or on an equal team? First, we study these questions theoretically. We f i nd that...

This paper develops a matching framework of offshoring in which offshoring is defined as cross-country matching between workers and managers with complementary production technology. We study the distributional effects of offshoring by embedding the matching framework in a two-country, two-task...

We prove that in a market where agents rank objects independently and uniformly at random, there exists an assignment of objects to agents with a constant average rank (i.e., an average rank independent of the market size). The proof builds on techniques from random graph theory and the FKG...

This paper develops a fully-solvable equilibrium matching model of incomplete information with early skill acquisition to provide general theoretical insights into fast rising top income inequality observed in the United States. Fast rising top income inequality is endogenously accommodated: In...

When parties are very unequally endowed, agreement may be very difficult to reach, even if the specific transaction is easy to contract on, and fungible resources can be transferred to compensate the losing party. The very fungibility of the transferred resource makes it hard to restrict its...

This paper examines how offshoring affects worker skill demands and studies its implications for wage inequality. Using Danish administrative data, we find that offshoring increases firm-level demand for higher skills in occupations with high exposure to foreign competition. This effect is more...

Starting from Schelling (1960), several game theorists have conjectured that payoff equity might facilitate coordination in normal-form games with multiple equilibria - the more equitable equilibrium might be selected either because fairness makes it focal or because many individuals dislike...