healthcare. We argue that markets are most advantageous in areas where high-powered incentives are desirable, but in areas where … high-powered incentives stimulate unproductive signalling effort, firms, or even government, may have a comparative … advantage. Firms may be able to weaken incentives and improve efficiency by obscuring information about individual workers …

our theory. We show that a key parameter determining the incentives for war is the elasticity of demand. Our first result …We develop a dynamic theory of resource wars and study the conditions under which such wars can be prevented. The … interaction between the scarcity of resources and the incentives for war in the presence of limited commitment is at the center of …