We develop a model of common agency with complete information and general preferences with non-transferable utility, and prove that the principales'Nash equilibrium in truthful strategies implements an efficient action.

Vortrag von Prof. Avinash K. Dixit Professor Emeritus of Economics, Princeton University

Failures of government policies often provoke opposite reactions from citizens; some call for a reversal of the policy while others favor its continuation in stronger form. We offer an explanation of such polarization, based on a natural bimodality of preferences in political and economic...