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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 pollution in the Ganges, then Varanasi obtains some spillover benefit and …
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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,...
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