This note describes the effects on human capital formation of rank-order tournaments offering identical prizes to a given share of the ranked contestants. This compensation scheme is thought to resemble the selection processes in different areas of the public administration, particularly in...

We consider a market with "red" and "green" workers, where labels are payoff irrelevant. Workers may acquire skills. Skilled workers search for vacancies, while firms search for workers. A unique symmetric equilibrium exists in which color is irrelevant. There are also asymmetric equilibria in...

In the economic modeling of bargaining, outside options have often been naively treated by taking them as the disagreement payoffs in an application of the Nash bargaining solution. This paper contrasts this method of predicting outcomes with that obtained from an analysis of optimal strategic...

This paper shows that Nash equilibria of a local-interaction game are equivalent to correlated equilibria of the underlying game.