How much do cultural biases affect economic exchange? We answer this question by using
data on bilateral trust between European countries. We document that this trust is affected …

Recent work across a wide range of issues in political economy as well as in American,
comparative, and international politics tries to explain the inefficient use of power …

The Coase theorem is one of the most influential and controversial ideas to emerge from
post–World War II economics. This article examines the theorem's origins, diffusion, and the …

Today, government is no longer considered the sole provider of public works or services.
Public-private partnership (PPP) has been recognized as an important approach to solving …

We characterize the outcomes of games when players may make binding offers of strategy
contingent side payments before the game is played. This does not always lead to efficient …

In most of the contract theory literature, contracting costs are assumed either to be high
enough to preclude certain forms of contracting or low enough to permit any contract to be …

We propose a model of equilibrium contracting between two agents who are “boundedly
rational” in the sense that they face time costs of deliberating current and future transactions …

We study a labour market equilibrium model in which firms sign optimal long-term contracts
with workers. Firms that are financially constrained offer an increasing wage profile: they pay …

Purpose This study is aimed to explore the dynamic performance incentive model for a
flexible PPP contract to handle uncertainties based on supervision during the long-time …

This paper develops a theory of the allocation of authority between two parties that produce
impure public goods. We show that the optimal allocation depends on technological factors …