We study the efficient mechanism for downsizing the public sector focusing on adverse selection in productive efficiency. Each agent is assumed to have two type-dependent reservation utilities: the status quo utility in the public sector before downsizing and the utility that he expects to...

A theoretical model of sequential first-price auctions where bidders are risk-averse and values are affiliated is developed. For constant risk-aversion utility functions and a particular specification of affiliation, closed-form solutions for the symmetric equilibrium of a sequence of k...

This paper shows how the instruments of incentive theory can be used to develop some views about the proper design of governments to avoid the capture of politicians and bureaucrats by interest groups.

This paper studies to what extent economic integration, or globalization, influences the accountability of politicians, In a framework the politicians are only controled through reelection rules, we study the effect of economic integration on the reelection rules chosen by the voters and try to...

In this paper we show how the order of Linear Stochastic Dominance proposed by Gollier (1995) can be applied to situations with dependent risky assets.

In addition to showing the connection between parallel contingent and noncontingent risk comparison problems, we articulate a method for solving both kinds of problems using the "basis" approach. The basis approach has often been used implicitly, but we argue that there is value to making its...