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This variant of coordination problem seeks the answer to why some countries fail to grow when public and private rent seeking makes property rights insecure. One reason is that rent seeking, especially by the governments officials are likely to hurt innovative activities: when returns to rent seeking relative to innovation increases. This may give rise to multiple equilibrium. Then in one equilibrium, fraction, and returns of innovations is low and because fraction of rent seeks is high. But simultaneously there is another equilibrium at which the opposite is the case.
Suppose there is certain social norm. Its enactment into statutory law lowers people's private cost of its enforcement because it creates the possibility that violation of norm wi
3 voters, A, B, and C, will decide by majority rule whether to pass bills on issues X and Y. Every of the two issues will be voted on indiviually. The change in net profits (in dol
Let us now consider a situation in which we know the timing of a change in policy but are unsure about the composition of the future policy. The association of different policy co
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Probelm 1: (a) What are the main roles of Government in the economic development of a country? (b) What are some of the emerging issues affecting the role of Government?
Q. What can we do then while aiming at the public policy? From the above, one task emerges immediately, that is of quantifying all economic and non economic effects of a certa
The major economies in the world are in a deep recession although there are some signs of growth. What implications has such a recession had for international business? How have go
Question: (a) What is the difference between a News Conference and a News Release? (b) An Organising Committee has been set up to celebrate the Chinese Spring Festival on S
what are the strengths and limitations of a pluralist society
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