We investigate the output, employment and productivity effects of profit sharing. A simple theoretical model demonstrates that positive incentive effects of profit sharing imply increased employment and output, but productivity measured as output divided by employment might be much less affected. In the second part of the paper the results of an empirical study are reported. By use of matching ...

The work introduces a simple framework to study the relationship between competition and incentives under non-exclusivity. We characterize the equilibria of an insurance market where intermediaries compete over the contracts they offer to a single consumer in the presence of moral hazard. Non-exclusivity is responsible for under-insurance and positive profits in an otherwise competitive set-up....

Observed changes in corporation tax revenues from year to year, which include the effects of changes in tax rates, deductions and compliance, appear to be highly volatile relative to profits, the tax base. This paper examines whether the ‘built-in’ fiscal drag properties of corporation tax can be expected to display similar properties. Simple, conceptual modelling demonstrates that the corporat...

This paper develops an analytic narrative examining an institution known as ‘The Exchequer of the Jewry’. The prohibition on usury resulted in most moneylending activities being concentrated within the Jewish community. The king set up the Exchequer of the Jewry in order to extract these monopoly profits. This institution lasted for almost 100 years but collapsed during the second part of the t...

We address the problem of supply chain performance when the retailers have bargaining power. In particular, in a supply chain with one supplier selling to multiple competing retailers, we investigate the effect of retailer bargaining power in the allocation of total supply chain profit among all channel members. We model a retailer’s bargaining power through its ability to set reservation profi...