This paper investigates the implications of Baumol's cost disease for a publicly provided good in the presence of distortionary taxation. A model is presented in which the publicly provided good experiences low labor productivity growth relative to the private good. The public sector will grow...

We model a negligence standard where the defendant's level of care is viewed with error by the judicial system. All cases are assumed to settle prior to trial, but the negotiated outcome reflects the expected outcome at trial. The policymaker may or may not be able to induce the optimal level of...

In the 50 years since its publication, Mancur Olson's Logic of Collective Action has had an enormous impact on the academic literature in both economics and political science. In this review essay, I discuss Olson's work in light of the ensuing research, particularly developments in the...

We conduct an experimental analysis of pretrial bargaining, while allowing for the costly disclosure of private information in a signaling game. Under the theory, 100% of plaintiffs with a weak case are predicted to remain silent, while 100% of the plaintiffs with a strong case are predicted to...

How does an increase in group size affect individual welfare in the presence of Olson's group size paradox? Under the standard approaches to modeling the group size paradox, individual welfare will decrease as the size of the group increases. However, this may not be true if we apply the group...

Under final offer arbitration (FOA), each party to the dispute submits a proposal to the arbitrator who must choose one of the two submitted proposals in the event of a dispute. A long line of research on FOA has assumed that the submitted proposals to the arbitrator are the final bargaining...

We develop a signaling model of final offer arbitration (FOA) in which the informed party makes the final settlement demand to the uninformed party. In FOA, each party submits a proposal to an arbitrator and if no agreement is reached, the arbitrator must select one of the two submitted...