We consider an Overlapping-generations economy where the aggregative production process uses physical capital and human capital. The human capital level of each individual is determined by the direct investment in education and some random "ability".

The fate of a paper has to be determined. It can be either accepted or rejected. Each member from among group of referees has an opinion regarding the acceptability of the paper. The desirable outcome, is the view held by the majority of referees . Howver, any referee, if asked to make a...