Policymakers tend to adopt too narrow a view of the creative industries when determining the desirability of copyright protection. In these industries, authors will often create new works despite weak protection. As recent developments in the music industry illustrate, markets for complements...

We analyze the behavior of game-show contestants who play a one-shot game called Friend or Foe. While it is a weakly dominant strategy not to cooperate, almost half the contestants on the show choose to play ?friend.? Remarkably, the behavior of contestants remains uncha nged even when stakes...

This study examines the financing choices of firms operating in a weak institutional environment. We argue that in relationship-based systems, global financing and political connections are substitutes: Well-connected firms are less likely to access foreign capital markets because (state-owned)...

In situations of excess demand, many firms use waiting lists to allocate products and services among their customers. The resulting allocation is likely to be inefficient, creating opportunities for Pareto improving trades among those who are waiting in line. Yet, in the queuing context, the...

We analyze political representation of preferences of different income groups by matching referendum outcomes for low, middle, and high-income voters with individual legislators decisions on identical policy proposals. Results indicate that legislators more closely represent preferences of rich...

When moving from a plurality rule to a proportional system, members of national parliament have more incentives to diverge from the median voter's preferences. We match voting behavior concerning legislative proposals of Swiss members of parliament with real referenda outcomes on the same issues...

Public debts capitalize into property prices. This so far neglected fact has important consequences for the tax vs. debt choice. Property owners suffer more from the debt burden and, thus, have a stronger preference for tax financing of government spending than tenants. As a consequence of the...

Exploiting a natural voting experiment we identify female preferences for real policy issues in the electorate. We then analyze whether female or male politicians in parliament more closely correspond to female preferences. Holding constant revealed constituent preferences, there is generally no...

The role of electoral incentives vs. selection is ideally analyzed in a setting where the same legislators are selected to decide on policies under different electoral rules and where voter preferences on policies can be precisely measured. This is the first paper to look at such a situation....

A pandemic is not only a biological event and a public health disaster, but it also generates impacts that are worth understanding from a societal, historical, and cultural perspective.In this contribution, we argue that as the disease spreads, we are able to harness a valuable key resource,...