I am getting tired: Effort and fatigue in intertemporal decision-making

Evidence on effort-demanding tasks suggests that exerting effort is fatiguing and that the accumulation of fatigue negatively affects the performance on both simultaneous and sequential tasks. This paper introduces the notion of fatigue by assuming that a worker has a limited amount of renewable resources that are depleted when effort is exerted. As multiple equilibria and thresholds can emerge, the optimal intertemporal allocation of effort depends both on the fatigue accumulated by the worker and on the wage rate chosen by the firm. A principal should take this into account, because choosing a wage rate that equals the marginal product value is, in general, suboptimal. This holds even if the worker is expected to exert constant effort over time.     

Which Scoring Rule Maximizes Condorcet Efficiency Under Iac?

Consider an election in which each of the n voters casts a vote consisting of a strict preference ranking of the three candidates A, B, and C. In the limit as n→∞, which scoring rule maximizes, under the assumption of Impartial Anonymous Culture (uniform probability distribution over profiles), the probability that the Condorcet candidate wins the election, given that a Condorcet candidate exists? We produce an analytic solution, which is not the Borda Count. Our result agrees with recent numerical results from two independent studies, and contradicts a published result of Van Newenhizen (Economic Theory 2, 69–83. (1992)).     

EMERGENCE AND PERSISTENCE OF INEFFICIENT STATES

We present a theory of the emergence and persistence of inefficient states based on patronage politics. The society consists of rich and poor. The rich are initially in power, but expect to transition to democracy, which will choose redistributive policies. Taxation requires the employment of bureaucrats. By choosing an inefficient state structure, the rich may be able to use patronage and capture democratic politics, so reducing the amount of redistribution in democracy. Moreover, the inefficient state creates its own constituency and tends to persist over time. Intuitively, an inefficient state structure creates more rents for bureaucrats than would an efficient one. When the poor come to power in democracy, they will reform the structure of the state to make it more efficient so that higher taxes can be collected at lower cost and with lower rents for bureaucrats. Anticipating this, when the society starts out with an inefficient organization of the state, bureaucrats support the rich, who set lower taxes but also provide rents to bureaucrats. We obtain that the rich–bureaucrats coalition may also expand the size of bureaucracy excessively so as to generate enough political support. The model shows that an equilibrium with an inefficient state is more likely to arise when there is greater income inequality, when bureaucratic rents take intermediate values, and when individuals are sufficiently forward‐looking.