We augment the standard cartel formation game from non-cooperative coalition theory, often applied in the context of international environmental agreements on climate change, with the possibility that singletons support coalition formation without becoming coalition members themselves. Rather,...

This discussion paper led to a publication in <A href="http://www.springerlink.com/content/n3w45lxj307m883m/">'Public Choice'</A> 109(3-4) 371-94.<P>In this paper we investigate experimentally the functioning of a wage tax financed unemployment benefit system on the development of the budget deficit, unemployment, and some other indicators of economic performance...</p></a>