Research in criminology has shown that the perceived risk of apprehension often differs substantially from the true level. To account for this insight, we extend the standard economic model of law enforcement (Becker, 1968) by considering two types of offenders, sophisticates and naïves. The...

Recently, the European Commission has issued the Directive 2004/35/CE on environmental liability with regard to the prevention and remedying of environmental liability. The Directive extends liability that usually refers to personal injuries and private property to harm where private property...

Contests are often unfair in the sense that outperforming the rival may not be enough to be the winner, because one contestant is favored by the allocation rule, while the other one is handicapped. We consider a discriminatory contest with handicaps and derive the contestants equilibrium...

We consider a standard two-player all-pay auction with private values, where the valuation for the object is private information to each bidder. The crucial feature is that one bidder is favored by the allocation rule in the sense that he need not bid as much as the other bidder to win the...

In unavoidable traffic accidents, autonomous vehicles (AVs) face the dilemma of protecting either the passenger(s) or third parties. Recent studies show that most people prefer AVs following a utilitarian approach by minimizing total harm. At the same time, however, they would adopt an AV only...

The safety concerns for autonomous vehicles (AV) is shown a to be roadblock to their adoption. This paper addresses these concerns by studying a unified, game-theoretic framework (leader-follower game) of mixed traffic in which AVs and human-driven vehicles (HV) coexist, with endogenous vehicle...

We study management practices and performance of public sector organizations in Germany. For a representative sample of municipalities, we provide survey evidence for substantial het-erogeneity in the use of structured management practices. This heterogeneity is not driven by differences across...

We study management practices and performance of public sector organizations in Germany. For a representative sample of municipalities, we provide survey evidence for substantial heterogeneity in the use of structured management practices. This heterogeneity is not driven by differences across...

We characterize optimal incentive contracts in a moral hazard framework extended in two directions. First, after effort provision, the agent is free to leave and pursue some ex-post outside option. Second, the value of this outside option is increasing in effort, and hence endogenous. Optimal...