We consider a moral hazard economy in banks and production to study how incentives for risk taking are affected by the quality of supervision. We show that low interest rates may generate excessive risk taking. Because of a pecuniary externality, the market equilibrium may not be optimal and...

Predictable polarization is everywhere. We can often predict the different directions that people’s opinions—including our own—will shift over time. Empirical studies suggest that this is so whenever evidence is ambiguous, a fact that’s often thought to demonstrate human bias or...

This paper proposes a new formulation of the Borda rule in order to deal with the problem of cloning manipulation. This new Borda voting specification will be named: Dynamic Borda Voting (DBV) and it satisfies Arrow's IIA condition. The calculations, propositions with proof and explanations are...

The assumption that payoff-relevant information is observable but not verifiable is important for many core results in contract, organizational and institutional economics. However, subgame-perfect implementation (SPI) mechanisms - which are based on off-equilibrium arbitration clauses that...

The assumption that payoff-relevant information is observable but not verifiable is important for many core results in contract, organizational and institutional economics. However, subgame-perfect implementation (SPI) mechanisms - which are based on off-equilibrium arbitration clauses that...

The assumption that payoff-relevant information is observable but not verifiable is important for many core results in contract, organizational and institutional economics. However, subgame-perfect implementation (SPI) mechanisms - which are based on off- equilibrium arbitration clauses that...

An organization must make a binary choice in each of two periods. The optimal choice depends on an unknown state of nature. The leader of the organization has a stock of political capital and observes a private signal of the state. The leader faces an inter-temporal choice problem. She may...

Thinking was Gordon Tullock's primary interest in life. He let his thinking roam widely and creatively over his many fields of interest; moreover, Tullock is widely recognized for the robust and creative quality of this thought. He left a valuable legacy. All the same, I think the value of that...