All rulers face political competition, both from rivals within their state, andfrom other states to which their subjects may exit. In a simple model, both kinds of competitionare substitutes. Internal competition (democracy) benefits citizens by allowingthem to replace rent-seeking rulers. But...

Agents compete to acquire a limited economic opportunity of uncertain pro…tability.Each agent decides how much he acquires public signals before making investmentunder fear of preemption. I show that equilibria have various levels of e¢ ciency undermild competition. The e¤ect of competition...

Agents compete to solve a problem. Each agent knows own computational capacityas private information and simultaneously chooses either a risky or a safe problemsolving method. This paper analyzes the optimal prize schemes from the perspectiveof the prize designer who wishes to …nd a solution as...

The paper presents a linear model of product quality in scientific competition.The only outputs of research are published papers; the onlyinputs are labor and papers by other researchers, which are cited whenused. Researchers compete for status, measured as their rank in a citationscount. If...

We present a model where compensation within a workteam is determinedendogenously by the use of a rank-order tournament. Team memberscompete in their efforts for the right to propose the distribution of a prizewithin the team. The implementation of a proposal requires the approvalof other team...

The common prior assumption asserts that the beliefs of agents in different states of theworld are their posteriors based on a common prior and possibly some private signal. Commonpriors are pervasive in most economic models of incomplete information, oligopoly models withasymmetrically informed...

A vast literature shows that individuals frequently fail to identify the normative solutionsin logical reasoning tasks. Much attention has been devoted to the study ofthese deviations at the individual level; less effort was exerted to investigate whetherinstitutional settings might facilitate...