Showing 1 - 10 of 72
We analyze group contests for public goods by applying the solution concept of an evolutionary stable strategy (ESS). We show that a global ESS cannot exist, because a mutant free-rider can always invade group behavior successfully. There does exist, however, a unique local ESS, which we...
Persistent link: https://www.econbiz.de/10011409788
We consider the evolution of preferences when trade occurs between two countries. We show that if one country is much larger than the other, its preferences can eventually take over the preferences of the second country. This result may provide an explanation of why small countries sometimes...
Persistent link: https://www.econbiz.de/10011450172
We show that a minimum wage introduced in the presence of asymmetric information about worker productivities will lead to lower unemployment levels than predicted by the standard labour market model with heterogeneous labour and symmetric information. -- minimum wages ; unemployment ; asymmetric...
Persistent link: https://www.econbiz.de/10003833327
Recent advances in telecommunications, particularly using fibre technologies, permit many services based on data-processing to be performed anywhere in the world. They thus become tradable and subject to the laws of comparative advantage. A good example is data-processing within large...
Persistent link: https://www.econbiz.de/10003850864
This paper describes the privatization program in Italy during the 1990s and puts that policy in the context of macroeconomic adjustment, general market deregulation, and promotion of private investment in the provision of public infrastructure. The wave of state divestitures reached Italy later...
Persistent link: https://www.econbiz.de/10011507688
Altruists and envious people who meet in contests are symbionts. They do better than a population of narrowly rational individuals. If there are only altruists and envious individuals, a particular mixture of altruists and envious individuals is evolutionarily stable.
Persistent link: https://www.econbiz.de/10011514081
There are two important problems in welfare benefit programs: the prevalence of welfare fraud, in which ineligible people receive welfare benefits, and incomplete take-up, whereby eligible poor people are reluctant to claim welfare benefits. This study investigates both of these opposing...
Persistent link: https://www.econbiz.de/10012299749
Reciprocity can be a powerful motivation for human behaviour. Scholars argue that it is relevant in the context of private provision of public goods. We examine whether reciprocity can resolve the associated coordination problem. The interaction of reciprocity with cost-sharing is critical....
Persistent link: https://www.econbiz.de/10010383392
We find experimental evidence that the decision problem of tax compliance changes if subjects ́declarations are not … picture looks more trustworthy than average. Depending on these beliefs, they may adjust their compliance decisions. Our …
Persistent link: https://www.econbiz.de/10009786030
We study compliance dynamics generated by a large set of behavioral rules describing social interaction in a population … cheating-auditing occurs: Intensive monitoring induces compliance, but with high compliance there is incentive for lax … monitoring; with less monitoring, compliance starts decreasing, and then there is an incentive to intensify monitoring. Thus, the …
Persistent link: https://www.econbiz.de/10010347038