We show the effects of the bargaining power of labour unions on product innovation under decentralised and centralised wage bargaining. In this context, we show the implications of preference function, which affects the market size. A higher union bargaining power increases innovation if...

This document describes and discusses a new supply side framework that quantifies the impact of structural reforms on per capita income in OECD countries. It presents the overall macroeconomic impacts of reforms by aggregating over the effects on physical capital, employment and productivity...

This paper analyses bargaining over an incentive compatible contract in a moral hazard framework. We introduce the Kalai-Smorodinsky bargaining solution and compare the outcome with the commonly applied Nash solution. Whether worker’s effort is higher in the Nash or the Kalai-Smorodinsky...

In this paper we experimentally investigate whether partial coercion can in combination with conditional cooperation increase contributions to a public good. We are especially interested in the behavior of the non-coerced populations. The main finding is that in our setting conditional...

Gordon Tullock has been one of the most important founders and contributors to Public Choice. Two innovations are typical “Tullock Challenges." The first relates to method: The measurement of subjective well-being, or happiness. The second relates to digital social networks such as Facebook,...

We provide experimental evidence on the emergence of redistributive societies. Individuals first vote on redistribution by feet and then learn their productivity and invest. We vary the individuals' information about their productivities at the time when they choose a distribution rule and find...

We examine the extent to which political scandals influence trust in electoral institutions in established Western democracies. The second ballot of the 2016 Presidential election in Austria needed to be repeated because of inconsistencies in individual electoral districts (scandal districts)....

In this paper, we use data from the German PISA 2003 sample to study the effects of central exit examinations on student performance, student attitudes, and teacher behavior. Unlike earlier studies we use (i) a value-added measure to pin down the effect of central exit exams on learning in the...

The paper analyzes the appointment of the European Commission as a strategic game between members of the European Parliament and the Council. The focal equilibrium results in Commissioners that duplicate the policy preferences of national Council representatives. Different internal decision...

Solar geoengineering has received increasing attention as an option to temporarily stabilize global temperatures. A key concern surrounding these technologies is that heterogeneous preferences over the optimal amount of cooling combined with low deployment costs may allow the country with the...