Essays in nonlinear pricing and rent seeking

This thesis consists of three self-contained essays on nonlinear pricing and rent-seeking. In the first chapter of the thesis, I provide new theoretical insights about non-linear pricing in monopoly and common agency by combining the principal-agent framework with other-regarding preferences. I introduce a new theoretical model that separately characterizes status-seeker and inequity-averse buyers. I show how the buyer’s optimal choice of quality and market inefficiency change when the buyer has other-regarding preferences. In the second chapter, I find the optimal productive rent-seeking and sabotaging efforts when the prize is endogenous. I show that due to the existence of endogeneity, sabotaging the productive rent-seeking efforts causes sabotaging the endogenous part of the prize, which can affect the rent-seeking efforts. Moreover, I introduce social preferences into my model and characterize symmetric productive rent-seeking and sabotaging efforts. In the last chapter, I propose a new theoretical model regarding information disclosure with Bayesian persuasion in rent-seeking contests when the efforts are productive. I show that under one-sided incomplete information, information disclosure decision depends on both the marginal costs of efforts and the marginal benefit of aggregate exerted effort. I find that since the efforts are productive and add a positive surplus on the fixed rent, my model narrows down the conditions for the information disclosure compared to the exogenous model. Under the two-sided incomplete information case, I observe that there is a non-monotone relationship between optimal effort and posterior beliefs. Thus, it might be difficult to conclude whether a contest organizer should disclose any information to contestants.

L’emergere del periurbano: il caso di Bologna

The rationale behind this piece of research is to study the movement of people from Bologna city centre to its outskirts and to find out what type of people are subject to move and the reasons for this: are they forced into or do they choose to do so? The present study will also consider how people commute from home to the city centre and the effect this has on them. For the purpose of this work, attention will be drawn to the possibility of these outer areas to develop in such a way that people will no longer need to commute to the city in order to recreate the advantages this offers to them (e.g. shops, job opportunities, ext). The theoretical framework this doctorial work is based upon concerns historical, urbanist, sociological and demographic approaches, along with the fact that the hegemony of the city centre has been benefiting has decreased. Historical centres and the central poles of metropolitan systems have lost their functional and symbolic relevance. More specifically, the Bologna Area is undergoing two tendencies: the first one is a process of residential decentralization from the capital town, capable of involving a plurality of social groups, which caused an enrichment of the social composition of "suburban" population. The second process is a partial substitution of the population in the city centre with new groups: this not only occurred with directional groups, but it has also interested new parts of the “service worker” class and members of metropolitan underclass, causing, consequentially, a growing complexity in central areas of the metropolitan system. The need to increase knowledge of Bologna territory has become more and more relevant, since the 70’s, when a series of important environmental transformations favoured a research interest that did not exclusively stopped within the city centre boarders, but rather encouraged the exploration of Bologna outer/suburban areas. Finally, in the urban/suburban discourse, this piece of research has highlighted how the search for a better quality of life (financial reasons, larger spaces, possibility to buy/rent for a better price, environmental issues) determines the choice to leave the centre of the city in favour of outer areas. The tendency that this doctorial work has brought to surface is the need to match a more manageable standard of living to the proximity to the city, despite the fact that this results in the stress caused to commuting and the lack of those cultural and entertaining facilities offered by the city. The new suburban inhabitants do not regret leaving the city, but, at the same time, do not feel emotionally attached to the new location at a community level: what they seem to look for is a more comfortable environment where to live in.

Pubblici poteri e signorie di castello nella romagna nord-occidentale (secoli XI-XIII)

La presente ricerca di dottorato consiste in un’analisi di carattere politico ed istituzionale dei poteri signorili e territoriali, collegati a distretti castrensi, documentati nella Romagna nord-occidentale durante il pieno medioevo. L’indagine mira a ricostruire, principalmente attraverso fonti documentarie, alcune delle quali inedite, la geografia dei poteri in un’area sub-regionale, con particolare attenzione al fenomeno della signoria rurale, dei poteri comitali e dell’incastellamento. Partendo dallo studio di una realtà locale, la ricerca arriva a sviluppare argomentazioni di carattere generale, ricollegandosi al dibattito storiografico sui poteri signorili e l’incastellamento. La ricerca risulta incentrata sui soggetti politici, laici ed ecclesiastici, detentori dei castelli e dei poteri pubblici nella Bassa Romagna, in primo luogo gli arcivescovi di Ravenna, i vescovi e i conti di Imola, le famiglie comitali di Cunio, Bagnacavallo e Donigallia nei secoli XI-XIII. L'attenzione si concentra, in particolare, sulla fase del cosiddetto “secondo incastellamento” e sui decenni a cavaliere tra XII e XIII secolo, con il tentativo di espansione dei comuni nel contado e la formalizzazione dei poteri dei signori rurali da parte dei sovrani svevi. Proprio alla complessa interazione con il mondo cittadino e allo stretto rapporto dei Cunio e dei Malvicini con la corte di Federico II viene dato ampio spazio nei capitoli conclusivi del presente lavoro.

Regulating State Aid: Inter-jurisdictional competition, public choice, and corporate governance

Depending on the regulatory regime they are subject to, governments may or may not be allowed to hand out state aid to private firms. The economic justification for state aid can address several issues present in the competition for capital and the competition for transfers from the state. First, there are principal-agent problems involved at several stages. Self-interested politicians might enter state aid deals that are the result of extensive rent-seeking activities of organized interest groups. Thus the institutional design of political systems will have an effect on the propensity of a jurisdiction to award state aid. Secondly, fierce competition for firm locations can lead to over-spending. This effect is stronger if the politicians do not take into account the entirety of the costs created by their participation in the firm location race. Thirdly, state aid deals can be incomplete and not in the interest of the citizens. This applies if there are no sanctions if firms do not meet their obligations from receiving aid, such as creating a certain number of jobs or not relocating again for a certain amount of time. The separation of ownership and control in modern corporations leads to principal-agent problems on the side of the aid recipient as well. Managers might receive personal benefits from subsidies, the use of which is sometimes less monitored than private finance. This can eventually be to the detriment of the shareholders. Overall, it can be concluded that state aid control should also serve the purpose of regulating the contracting between governments and firms. An extended mandate for supervision by the European Commission could include requirements to disincentive the misuse of state aid. The Commission should also focus on the corporate governance regime in place in the jurisdiction that awards the aid as well as in the recipient firm.

La creazione del distretto comunale: Il caso di Reggio Emilia (XII-prima metà XIII secolo)

L’oggetto della ricerca è stato il processo di creazione del distretto del Comune di Reggio Emilia tra il XII e l’inizio del XIII secolo, di cui sono stati analizzati diversi aspetti salienti, così come emergono in primo luogo dall’analisi del liber iurium reggiano, il Liber grossus antiquus. L’elaborato è suddiviso in due parti. Nella prima parte si è cercato di ricostruire le vicende, i legami e il patrimonio delle famiglie rurali reggiane nel corso del XII secolo in particolare e gli aspetti caratteristici del Comune cittadino nella sua fase iniziale. Nella seconda parte ci si è concentrati sull’analisi dei caratteri più rilevanti del processo di creazione del distretto comunale reggiano: il rapporto tra i signori del contado, i Comuni rurali e il Comune urbano; la difesa e l’incremento dei Communia cittadini; la fondazione di borghi franchi e nuovi. Il Comune di Reggio Emilia tentò di annettere l’intero territorio diocesano al distretto cittadino, non riuscendoci completamente e adottando una politica territoriale diversificata a seconda dei caratteri delle zone controllate.

Essays in Empirical Political Economics

This thesis takes two perspectives on political institutions. From the one side, it examines the long-run effects of institutions on cultural values. From the other side, I study strategic communication, and its determinants, of politicians, a pivotal actor inside those institutions. The first chapter provides evidence for the legacy of feudalism - a set of labor coercion and migration restrictions -, on interpersonal distrust. I combining administrative data on the feudal system in the Prussian Empire (1816 – 1849) with the geo-localized survey data from the German Socio-Economic Panel (1980 – 2020). I show that areas with strong historical exposure to feudalism have lower levels of inter-personal trust today, by means of OLS- and mover specifications. The second chapter builds a novel dataset that includes the Twitter handles of 18,000+ politicians and 61+ million tweets from 2008 – 2021 from all levels of government. I find substantial partisan differences in Twitter adoption, Twitter activity and audience engagement. I use established tools to measure ideological polarization to provide evidence that online-polarization follows similar trends to offline-polarization, at comparable magnitude and reaches unprecedented heights in 2018 and 2021. I develop a new tool to demonstrate a marked increase in affective polarization. The third chapter tests whether politicians disseminate distortive messages when exposed to bad news. Specifically, I study the diffusion of misleading communication from pro-gun politicians in the aftermath of mass shootings. I exploit the random timing of mass shootings and analyze half a million tweets between 2010 – 2020 in an event-study design. I develop and apply state-of-the-art text analysis tools to show that pro- gun politicians seek to decrease the salience of the mass shooting through distraction and try to alter voters’ belief formation through misrepresenting the causes of the mass shootings.