For the last 40 years the market for medical interns has been cleared with the help of a central matching procedure, the NRMP. This mechanism is applied after the wages are determined. So it is natural to ask how such a rationing scheme affects the equilibrium wages in this market. I present a...

Veto institutions are often dominated by government opponents with rival electoral and policy interests (e.g. \divided government"). I investigate the tradeoff between policy control and policy blockade when both the government and the veto party may cater to opposing special interests. The...

The paper studies the relative merits of direct and representative legislation in a setting where voters are uncertain both with respect to the likely consequences of different policies and with respect to the political preferences of their fellow citizens. Under representative legislation, the...

We develop a model of assignment games with pairwise-identity-dependent externalities. A concept of conjectural equilibrium is proposed, and the universal conjecture is shown to be the necessary and sufficient condition for the general existence of equilibrium. We then apply the solution concept...

We introduce the moonlighting game. Player A can take money from or pass money to player B, who can either return money or punish player A. One-shot experiments were performed on this game. Treatments were conducted with and without making non-binding agreements beforehand. The results refute...

Video taped group decision experiments on a two-person investment game were used to elicit the motivational structure of subjects' behavior. A majority of investors trusted (invested) and a majority of receivers reciprocated (returned). Cognition and decision were focused on extremes: total or...