Much literature on political behavior treats politicians as motivated by reelection, choosing actions to signal their types to voters. We identify two novel implications of models in which signalling incentives are important. First, because incumbents only care about clearing a reelection...

We study countries choosing armament levels and then whether or not to go to war. We show that if the costs of war are not overly high or low, then all equilibria must involve "dove," "hawk," and "deterrent" strategies and the probability of war is positive (but less than one) in any given...

The adoption of mandatory gender quotas in party lists has been a subject of discussion in many countries. Since any reform obviously requires the approval of a (sometimes qualified) majority of incumbent legislators' votes, keeping an eye on incumbents' interests and incentives in different...

The cooperative solution concept introduced here, the Stable Demand Set, contains the Core and is included in the Zhou Bargaining Set, eliminating the "dominated" coalition structures. The demand vectors belonging to the Stable Demand Set are self-stable. In the class of constant-sum homogeneous...

We study an overlapping generations version of the principal-agent problem, where incentive contracts are determined in general equilibrium. All individuals are workers when young, but have a choice between becoming entrepreneurs or remaining workers when old. Imperfections in the credit market...

Much literature on political behaviour treats politicians as motivated by re‐election, choosing actions to signal their types to voters. We identify a novel implication of incumbent signalling. Because incumbents only care about clearing a re‐election hurdle, signals will tend to cluster...