Membership in the authors' labor-managed firm is determined in the long run by expected income maximization. In the short run, upon the realization of output price, each member may leave the labor-managed firm. However, a decision to leave when the entire membership quits is associated with...

Government intervention often gives rise to contests in which the possible ‘prizes’ are determined by the existing status-quo and some new public- policy proposal . In this paper we study the general class of such two-player public-policy contests and examine the effect of a change in the...

This paper presents a simple twofold mechanism that attains a complete implementation of the efficient allocation of pollution. The first component is adopted from Duggan and Roberts [Duggan, J., Roberts, J., 2002. Implementing the efficient allocation of pollution. American Economic Review 92,...

In this note we study the robustness of optimal organizational architectures, focusing on hierarchies and polyarchies. These two specific architectures are often applied in economic systems and have received considerable attention in the literature. It turns out that the application of these...