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01.05.2006
The standard contest model in which participants compete in a
single dimension is well understood and documented. Multi-dimension
extensions are possible but are liable to increase the complexity
of the contest structure, mitigating one of its main a...
We set up a simple political economy model where economic
integration raises the profitability of multinational firms. In
this setting redistributive taxation may rise following economic
integration, if the effects of the widened income gap dominate...
While most market transactions are subject to strong incentives,
transactions within firms are often not incentivized. We offer an
explanation for this observation based on envy among agents in an
otherwise standard moral hazard model with multiple a...
For the estimation of many econometric models, integrals without
analytical solutions have to be evaluated. Examples include limited
dependent variables and nonlinear panel data models. In the case of
one-dimensional integrals, Gaussian quadrature is...
01.03.2006
There is strong evidence that in bargaining situations with
asymmetric outside options people exhibit self-serving biases
concerning their fairness judgements. Moreover, psychological
literature suggests that this can be a driving force of bargaining...
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