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Government intervention often gives rise to contests and the government can influence their outcome by choosing their type. We consider a contest with two interest groups: one that is governed by a central planner and one that is not. Rent dissipation is compared under two well-known contest...
Persistent link: https://www.econbiz.de/10010335998
The form of contests for a single fixed prize can be determined by a designer who maximizes the contestants' efforts. This paper establishes that, under common knowledge of the two asymmetric contestants' prize valuations, a fair Tullock-type endogenously determined lottery is always superior to...
Persistent link: https://www.econbiz.de/10010336054
Intuitively, we expect that players who are allowed to engage in costless communication before playing a game would be foolish to agree on an inefficient equilibrium. At the same time, however, such preplay communication has been suggested as a rationale for expecting Nash equilibrium in...
Persistent link: https://www.econbiz.de/10010343339
We test the proposition that individuals may experience a self-control conflict between short-term temptation to be selfish and better judgment to act pro-socially. Using a dictator game and a public goods game, we manipulated the likelihood that individuals identified self-control conflict, and...
Persistent link: https://www.econbiz.de/10010352069
Individuals in a social dilemma may experience a self-control conflict between urges to act selfishly and their better judgment to cooperate. Pairing a public goods game with a subtle framing technique, we test whether perception of self-control conflict strengthens the association between...
Persistent link: https://www.econbiz.de/10010352083
The social dilemma may contain, within the individual, a self-control conflict between urges to act selfishly and better judgment to cooperate. Examining the argument from the perspective of temptation, we pair the public good game with treatments that vary the degree to which money is abstract...
Persistent link: https://www.econbiz.de/10010352114
Prescott (2004) argues that Europeans work much less than Americans because of higher taxes and that they would gain significantly by charging US taxes and working as much as Americans. I argue that the opposite may be true and that Americans work more than Europeans due to a coordination...
Persistent link: https://www.econbiz.de/10010352309
Much recent research in economics focuses on exploring behavioral anomalies, i.e., systematic deviations from the assumptions of the rationally self-interested model of man. Laboratory studies are used to identify seeming inconsistencies with micro-economic theory on the level of individuals....
Persistent link: https://www.econbiz.de/10010352638
A frequently heard explanation for the underdeveloped metro system in Rome is the following one: If we tried to build a new metro line, it would probably be stopped by archeological finds that are too valuable to destroy, so the investment would be wasted. This statement, which seems...
Persistent link: https://www.econbiz.de/10010352866
In this note, three major areas of Buchanan's research are briefly described: (1) The ideas of Knut Wicksell on Buchanan's work, (2) constitutional economics and the veil of ignorance, and (3) the role of government and/or the power to tax. It is shown that these three areas had a major...
Persistent link: https://www.econbiz.de/10010368256