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This paper presents a model of private provision of a public good where individuals in a group have altruistic preferences and care about the private and public good consumption of the other members of the group. I show that increasing the level of altruism increases the Nash level of the public...
Persistent link: https://www.econbiz.de/10013222872
We study conflict between two groups of individuals. Using Schaffer's (1988) concept of evolutionary stability we provide an evolutionary underpinning for in-group altruism combined with spiteful behavior towards members of the rival out-group. We characterize the set of evolutionarily stable...
Persistent link: https://www.econbiz.de/10013114458
We conduct a large-scale survey experiment in nine European countries to study how priming a major crisis (COVID-19), common economic interests, and a shared identity influences altruism, reciprocity and trust of EU citizens. We find that priming the COVID-19 pandemic increases altruism and...
Persistent link: https://www.econbiz.de/10013221358
Transfer pricing is relevant in three different contexts: From a managerial perspective, intra-firm transfer prices are employed to set incentives for sub-divisional managers to enhance efficient allocation of resources. From an international tax perspective, transfer pricing rules under the...
Persistent link: https://www.econbiz.de/10013131147
Quotas for special groups of students often apply in school or university admission procedures. This paper studies the performance of two mechanisms to implement such quotas in a lab experiment. The first mechanism is a simplified version of the mechanism currently employed by the German central...
Persistent link: https://www.econbiz.de/10013117132
What is the strategic role of membership in an intergovernmental group with unanimity requirements if the group negotiates with an external player in a setting with incomplete information? Being in such a group has a strategic effect compared to negotiating as a stand-alone player and reduces...
Persistent link: https://www.econbiz.de/10013089384
I analyze whether or not a monitoring problem regarding abroad abatement can justify the import quotas on abroad emission certificates applied by several emission trading schemes. For this purpose I extend the Becker (1968) Crime and Punishment model by heterogeneity in the observability of...
Persistent link: https://www.econbiz.de/10013015264
The usual method of solving for an optimal nonlinear tax schedule is that of the primal approach -- first solving for the optimal allocation, and subsequently determining which tax system decentralizes this allocation. While this method is mathematically rigorous, it lacks intuitive appeal. I...
Persistent link: https://www.econbiz.de/10012999869
Clawbacks are contractual provisions in executive compensation contracts that allow for an ex post recoupment of variable pay if certain triggering conditions are met. As a result of regulatory responses to financial crises and corporate scandals as well as of growing shareholder pressure to...
Persistent link: https://www.econbiz.de/10012833330
In this note, we characterize the equilibria of the standard pivotal-voter participation game between two groups of voters of asymmetric sizes, as originally proposed by Palfrey and Rosenthal [1983. A strategic calculus of voting. Public Choice. 41, 7-53]
Persistent link: https://www.econbiz.de/10012935191