This paper explores the role of unilateral and idiosyncratic affection rents ("love") from being married with a specific individual in a matching model with individuals with heterogenous matching frequencies. We show that individuals suffer in expectation from being matched with individuals with...

Incomplete information is a commitment device for time consistency problems. In the context of time consistent labor income taxation privacy can lead to a Pareto superior outcome and increases the effectiveness of public education as a second best policy.

In many situations the indivaduals who can generate some output must enter a contest for appropriating this output. This paper analyses the investment incentives of such agents and the role of incumbency advantages in the contest. Depending on the advantages, an increase in the productivity of...