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There is a growing interest in the literature on trust and social capital in the analysis of the role of the State in the creation and destruction of trust. According to some authors, the intervention of the State crowds out trust instead of fostering it. In this article, the author shows that...
The article introduces unawareness of actions into the standard moral hazard model in contract theory. We allow the contracting party (the principal or the agent) to be unaware of his or the other party's actions. The principal may also have an incorrect belief about the awareness of the agent....
How does the informational role of interest groups interact with institutions when politicians seek to control the bureaucracy? In 1992, Banks and Weingast argued that bureaucrats hold an informational advantage vis-à-vis political principals concerning policy-relevant variables, and that when...
Using a real-time, spatial, renewable resource environment, we observe participants in a set of experiments formulating informal rules during communication sessions over three decision rounds. In all three rounds, the resource is open access. Without communication, the resource is persistently...
In this paper we address the general question of how social influence determines collective outcomes for large populations of individuals faced with binary decisions. First, we define conditions under which the behavior of individuals making binary decisions can be described in terms of what we...
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