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Legislative Bargaining and Coalition Formation
Affirmative Action in a Competitive Economy
Statistical Discrimination and Efficiency
affirmative action constraint allocation argument assume assumption backwards induction benefits of investment best responses candidate equilibrium complex task consider continuation payoff continuation value cutoff decreasing denote discount factors discriminated group discriminatory equilibria distribution equal equation equilibrium outcomes exists factor ratio follows fraction of agents fraction of investors full rank function given group identity Hence human capital human capital investments implement implies incentive compatibility inequality input of labor intuition investment behavior investment costs Lemma marginal productivity monotone likelihood ratio Nash equilibrium optimal order condition planner planning problem profitable deviation proof of Proposition proposal rules qualified workers rational voting rules returns to scale rounds of bargaining satisfied Section sequentially rational voting signal simple task single group model statistical discrimination strategy profile strict incentive strictly increasing strictly positive measure subgame perfect equilibrium Suppose symmetric symmetric equilibrium task assignment rule unique solution voted to reject wage scheme