We study litigation between a plaintiff and a defendant in which each litigant hires an attorney who expends his effort on her behalf, and the attorneys' effort is not verifiable to a third party. We examine the equilibrium fixed fees and contingent fees for the attorneys in two legal systems:...

This paper examines the impact of employment density (agglomeration) on the hourly earnings of workers across districts of Great Britain. The potentially two-way causality between agglomeration and productivity is dealt with using two instruments: the total land area of a district and its...

A model is analyzed in which agents exert effort to create innovations within an organization. When payments are infeasible, the decision on the implementation of a proposal is shown to bemadeby simplemonotonic decision rules. A trade-off arises between the use of information and the incentives...