We study optimal employment contracts for present-biased employees if firms cannot commit to long-term contracts. Assuming that an employee's effort increases his chances to obtain a future benefit, we show that individuals who are naive about their present bias will actually be better off than...

Explanations are provided for why governments do as they do in agriculture. Alternative frameworks are assessed to explain government policy including collective action and politician-voter interaction models. Several key patterns of policies are analyzed including the “developmental...