We use experiments to investigate the use of advice as a coordinating device in the 'Minimum Effort Game' which is a coordination game with weak strategic complementarities and Pareto-ranked equilibria. The game is played by non-overlapping generations of players who, after they are done, pass...

Many developing countries are experimenting with decentralisation of public service delivery to elected local governments instead of bureaucrats appointed by a central government. We study the resulting implications in a theoretical model in which the central government is uninformed about local...

The authors study the optimal compensation policy for a corruptible inspector charged with monitoring pollution from a factory. Their utilitarian approach focuses on the trade-off among corruption, pollution, and enforcement effort. Owing to the strategic interaction between factory and...