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When a deficit occurs in the funding of collective goods, it is usually covered by raising the amount of taxes or by rationing the supply of the goods. This article compares the efficiency of these institutions. We report the results of a 2x2 experiment based on a game in the first stage of...
Persistent link: https://www.econbiz.de/10012776015
There is a general class of model used to examine the expenditure and tax strategies adopted towards mobile factors by states that are members of regional unions (eg., federations, confederations or common markets). We develop a variant of this model, extended to allow for imperfect factor...
Persistent link: https://www.econbiz.de/10014121785
We study mutual-aid games in which individuals choose to contribute to an informal mutual insurance pool. Individual coverage is determined by the aggregate level of contributions and a sharing rule. We analyze theoretically and experimentally the (ex ante) efficiency of equal and...
Persistent link: https://www.econbiz.de/10013010263
Malicious activity in cyberspace comprises numerous forms, often resulting in significant consequences for the victims. According to the actual circumstances, a number of measures can be considered in response to such cases. In order to bring the perpetrators to justice, it is necessary to...
Persistent link: https://www.econbiz.de/10012956690
Using a dictator game experiment, we examine whether the introduction of group identities affects giving. Group identities can activate feelings of in-group love and out-group hate to create an in-group bias. In addition, group identities may spawn social sanctions that are designed to reinforce...
Persistent link: https://www.econbiz.de/10012507375
Who gets elected to political office? The negative selection hypothesis posits that the inherently dishonest run for office, expecting to earn political rent. Alternatively, the positive selection hypothesis suggests that individuals join politics to make a difference. Developing country...
Persistent link: https://www.econbiz.de/10012294723
It will be shown that for rational players with a sufficiently large time horizon it is advantageous to keep promises and not to cheat even if cheating is the optimal behaviour in the short run. This explains why ethics could develop in a market economy where incentives to cheat are ubiquitous.
Persistent link: https://www.econbiz.de/10005032155
I study a sequential-move public goods game based on the notion that leadership comes with an obligation; conscientious leadership. Provision by the leader of an amount of the public good below a minimum imposes a psychological cost on the follower which increases his unit cost of contribution....
Persistent link: https://www.econbiz.de/10012964625
The capacity to sustain policies over time and the capacity to adjust policies in the face of changing circumstances are two desirable properties of policymaking systems. The veto player approach has suggested that polities with more veto players will have the capacity to sustain policies at the...
Persistent link: https://www.econbiz.de/10010247136
What explains significant variation across countries in the use of vote buying instead of campaign promises to secure voter support? This paper explicitly models the tradeoff parties face between engaging in vote buying and making campaign promises, and explores the distributional consequences...
Persistent link: https://www.econbiz.de/10011521218