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When making collektive desicions, principals (voters or districts) typically benefit by strategically delegating their bargaining and voting power to representatives different from themselves. There are conflicting views in the literature, however, of whether such a delegate should be...
Persistent link: https://www.econbiz.de/10010266308
This paper examines Latvia's foreign trade and investment relations with Germany and Russia during the interwar period and the period after the restoration of independence up to now. During the period between the two world wars Latvia's foreign trade was completely integrated into the European...
Persistent link: https://www.econbiz.de/10010304308
As the most inhospitable continent on Earth, Antarctica has more than 90% of its territory covered with ice and contains around 70% of all potable water in the world. Its proximity to South America is especially relevant to Brazil, which includes it in the country's strategic surrounding area....
Persistent link: https://www.econbiz.de/10012671219
I investigate when side payments facilitate cooperation in a context with strategic delegation. On the one hand, allowing side payments may be necessary when one party's participation constraint otherwise would be violated. On the other, with side payments each principal appoints a delegate that...
Persistent link: https://www.econbiz.de/10010282922
I develop a dynamic model of costly private provision of public goods where agents can also invest in cost-reducing technologies. Despite the n+1 stocks in the model, the analysis is tractable and the (Markov perfect) equilibrium unique. The framework is used to derive optimal incomplete...
Persistent link: https://www.econbiz.de/10010282926
Persistent link: https://www.econbiz.de/10011335455
We consider a budget-constrained mechanism designer who selects an optimal set of projects to maximize her utility. Projects may differ in their value for the designer, and their cost is private information. In this allocation problem, the quantity of procured projects is endogenously determined...
Persistent link: https://www.econbiz.de/10011932892
We show how sanctioning is more effective in increasing cooperation between groups than within groups. We study this using a trust game among ethnically diverse subjects in Afghanistan. In the experiment, we manipulate i) sanctioning and ii) ethnic identity. We find that sanctioning increases...
Persistent link: https://www.econbiz.de/10011932972
We provide evidence on how responsibility-shifting through delegation occurred in China's implementation of the one-child policy. We show that trust in local governments was reduced when they were the primary enforcer of the policy (1979–1990), while trust in neighbors was reduced when...
Persistent link: https://www.econbiz.de/10014467724
When voting takes place in democratic institutions, we find (either explicitly or implicitly) that there is an agenda setter or a formateur. Such players are uniquely able to make substantive proposals for given topics. Their statuses remain intact even after rejection of proposals, but they...
Persistent link: https://www.econbiz.de/10010297248