In many organizations, decisions are taken by unanimity giving each member veto power. We analyze a model of an organization in which members with heterogenous productivity privately contribute to a common good. Under unanimity, the least efficient member imposes her preferred effort choice on...

We show that the availability of finance affects firms not only through financial markets, but also through the labor market. In our model, talented workers care for realizing their ideas because this can increase their lifetime income, but they also wish to be insured against income risk. Large...