This paper examines lotteries and seniority queues as forms of commodity bundling price discrimination. There are good and bad seats, and two types of potential purchasers. Offered the choice of a high-priced good seat and a moderately-priced bundle of good and bad seats, customers self-select...

Jobs with performance-related pay (PRP) attract workers of higher ability and induce workers to provide greater effort. The authors construct an integrated model of effort and sorting that clarifies the distinction between observable and unobservable ability and the relationship between earnings...

This paper considers how the behaviour of the two London opera houses differs from profit-maximisation, possibly in response to the high level of government funding and private donations. The opera houses put on more innovative and artistically rewarding operas than would be the case with...

The paper extends the theoretical approach in Lazear (1986, 1996) to show that jobs with performance related pay (PRP) attract workers of higher unobservable ability, and also induce workers to provide greater effort. We then test some of the predictions of this model against data from the...

According to surprising raw data from the British Household Panel Survey, full-time women are more likely than men to be promoted. Controlling for observed and unobserved individual heterogeneity, we find that women are promoted at roughly the same rate as men, but receive smaller wage increases...