Questions tagged [incentives]

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If the payroll tax were eliminated on incomes below $30000 what would happen?

If you canceled all payroll taxes below $30000 / $60000 single / married what would happen? I know that this could increase firm profits, or increase wages, or the number of jobs, or decrease prices ...
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Would search engine spam still be a problem even if every incoming click were to cost money?

Search engine spam can be thought of as any activity that seeks to gain attention for a web page through deceptive means. I suspect that search engine spam is a natural result of profit-maximizing ...
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30 views

What is a super deduction?

This is a term often encountered in documents published by the Big Four (Deloitte, Ernst & Young, Price Waterhouse Coopers, KPMG), for instance in the E&Y 2018 Worldwide R&D Incentives ...
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Incentive compatibilty conditions for multi-item auctions

In this paper by Myerson on optimal single item auctions, the incentive compatibility condition is shown to be equivalent to the following simpler conditions on the auction - (i) the allocation ...
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25 views

Has contest theory ever been used to design real-world contests?

Contest theory, very much like auction theory, studies how people act in a contest and the properties of such a competition. There is a large literature that investigates different aspects of the ...
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75 views

What are the economics behind web spam?

In this question, I'm referring to "web spam" on search engines (not email spam), such as placing misleading keywords on one's web page so that a pornographic site, for example, would get a lot of ...