This paper provides an explanation for the common observation that higher income neighborhoods typically receive better public services compared with lower income neighborhoods. Intuitively, one might expect that lower income groups, which usually form the voting majority of cities, would object...

Why do firms sometimes choose to undertake their R&D by financing start-up companies, while other times they do it in their internal labs? We present a model where the choice of R&D is driven by information asymmetries on the quality of the project between the corporate venture capitalist and...