We study how spillovers from water pollution cleanup in the Ganges affect social welfare in an aggregate economy consisting of Kanpur and Varanasi, two cities through which this river flows. We view pollution cleanup in both cities as a local public good and point out that, if Kanpur cleans up...

I study a class of agency problems that are characterized by the existence of an underlying organizational hierarchy. Specifically, I analyze a two forked, three tiered hierarchy and I show that when the private information of the players in the second and in the third tiers of the hierarchy,...