This paper studies an extension of Rogoff (1985) where the central banker can choose how much effort to exert and thereby learn about a supply shock. With this assumption, it is not necessarily optimal for society to delegate to a .conservative. banker. This may explain why such delegation often...

A model of a two-candidate election is developed in which the candidates are mainly office-motivated but also to some arbitrarily small extent policy-motivated, and their chosen platforms are to some arbitrarily small extent noisy. The platforms’ being noisy means that if a candidate has...

We study the effects of unequal representation in the interest-group system on the degree of information transmission between a lobbyist and a policymaker. Employing a dynamic cheap-talk model in which the lobbyist cares instrumentally about his reputation for truthtelling, we show that the...

I study Cournot competition under incomplete information about demand while assuming that market price must be non-negative for all demand realizations. Although this assumption is very natural, it has only rarely been made in the earlier literature. Yet it has important economic consequences:...