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Full-Text Articles in Behavioral Economics
The Role Of Patronage In Public Wage Determination, John Fessick
The Role Of Patronage In Public Wage Determination, John Fessick
Business and Economics Honors Papers
Patronage politics and government behavior, in general, lend themselves to economic model building and empirical analysis. They both require human processes to function. They are human institutions - shaped and molded by people. Because human beings are so vital a part of government and the behavior of decision-makers within that institution, assumptions of self-interest and the rational man lead to important implications which are necessary to the understanding and reshaping of government in order for it to work for the "common good." Only by understanding the framework of government and presenting an accurate picture of human behavior within that framework …
Sequential Bargaining Mechanisms, Peter Cramton
Sequential Bargaining Mechanisms, Peter Cramton
Peter Cramton
The introductory discussion presented in this chapter considers the simplest type of sequential bargaining games in which the players’ time preferences are described by known and fixed discount rates. I begin by characterizing the class of perfect bargaining mechanisms, which satisfy the desirable properties of incentive compatibility (i.e., each player reports his type truthfully), individual rationality (i.e., every potential player wishes to play the game), and sequential rationality (i.e., it is never common knowledge that the mechanism induced over time is dominated by an alternative mechanism). It is shown that ex post efficiency is unobtainable by any incentive-compatible and individually …