This paper develops a theory of the allocation of authority between two parties that produce impure public goods. We show that the optimal allocation depends on technological factors, the parties' valuations of the goods produced, and the degree of impurity of these goods. When the degree of...

We consider a two-person Cournot game of voluntary contributions to a public good with identical individual preferences, and examine equilibrium aggregate welfare under a separable, symmetric and concave social welfare function. Assuming the public good is pure, Itaya, de Meza and Myles (Econ....

Field evidence suggests that people belonging to the same group often behave similarly, i.e.,behaviour exhibits social interaction effects. We conduct an experiment that avoids theidentification problem present in the field. Our novel design feature is that each subjectsimultaneously is a member...

In this paper we show that subtle forms of deceit undermine the effectiveness of incentives.We design an experiment in which the principal has an interest in underreporting the trueperformance difference between the agents in a dynamic tournament...

In many environments, tournaments can elicit more effort from workers, except perhapswhen workers can sabotage each other. Because it is hard to separate effort, ability andoutput in many real workplace settings, the empirical evidence on the incentive effect oftournaments is thin...