This paper studies the location decisions of political parties. We propose a game where agents vote according to ideology and valence, and media create candidates' charisma. The results we obtain show that candidates realize the power of media and therefore locate themselves at some point...

In actual environmental policy, the design of actual pollution emission taxes differs significantly with the optimal Pigovian tax. In particular, earmarking prevails and actual taxes are usually combined with regulation. Furthermore tax rates are generally too low to significantly influence...