We consider public-private partnerships, in which a public official selects a project that is then developed and operated by a private contractor. We derive optimal public accounting rules when the official's choice among projects is biased by ideology or social ties or because of pandering to...

The authors introduce a class of alternating-move, infinite-horizon models of duopoly. The timing captures the presence of short-run commitment s. They apply this framework to a natural monopoly in which costs are so large that at most one firm can make a profit. The firms install short-run...

The authors provide game theoretic foundations for the classic kinke d demand curve and Edgeworth cycle. In their alternating-move model, there are multiple Markov perfect equilibria of both the kinked deman d curve and Edgeworth cycle variety. In any Markov perfect equilibria , profit is...

The authors analyze the principal-agent relationship when the principal has private information as a three-stage game: contract proposal, acceptance/refusal, and contract execution. They assume that the information does not directly affect the agent's payoff (private values). Equilibrium exists...

We build a simple model to capture the major virtues and drawbacks of making public officials accountable (i. e., subjecting them to reelection): On the one hand, accountability allows the public to screen and discipline their officials; on the other, it may induce those officials to pander to...