SEARCH BEHAVIOR OF ASYMMETRICALLY INFORMED VOTERS: AN EXPERIMENTAL STUDY*

This paper experimentally investigates individual level search within a spatial election model. In our model the voter is required to cast a ballot for one of two candidates. However, the voter's task is made non-trivial since, even though the location of one candidate is known, the location of a second candidate is unknown. To reduce uncertainty regarding the unknown candidate's location, the voter may undertake an information search. We find that search in this environment is a function of the cost of search, the quality of information, and the voter's location on the issue space.     

COST-VOLUME-PROFIT COMPLICATIONS USING A SIMPLIFIED FIRM

This paper assesses the problems of using a simplified firm of the typehggested by Sterling and Thomas (1979) to develop internal pricing and output levels generally and for cost-volume-profit calculations specifically. The particular choice of industry in this case makes more complicated the development of such internal accounting information. The paper specifies the unusual operating conditions that exist in this industry and the problems that these cause when deriving useful cost-volume-profit information for pricing and output decisions.     

Implementation and information in teams

A risk-neutral principal hires risk-averse agents to work in a team production process. Each agent can observe the actions taken by some subset of the other agents, and (perhaps) the realization of a random variable which is correlated with output. The principal cannot observe actions or the random variable. However, the agents can communicate with the principal, and final output is verifiable. We characterize the information structures that make it possible for the principal to implement his first best. In general it will be desirable to restrict the information available to the agents. If the first best can be implemented, then it can be implemented by a very simple mechanism, in which each agent forecasts the team output, but sends no other message.