Managers in international joint ventures work with resources contributed by investors from multiple nationalities. Fan Wu shows through a series of experimental studies among students and managers from China, South Korea, Germany, and the USA that cultural affinity between the manager and one of...

We study a mechanism design problem where allocation rule is randomized and transfers are contingent on outcomes. A sender reports his private information. An exogenous randomized allocation rule assigns an outcome based on the report. A central planner designs an outcome-contingent transfer to...