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Indiana University Bloomington


The Kelley Advantage

The department is home to the authors of Managerial Economics and Business Strategy and Games and Information: An Introduction to Game Theory, two of the nation’s leading textbooks in the field.

Research and Publications

Book Chapters

A Theory of Trustees, and Other Thoughts


Eric Bennett Rasmusen


Independent central bankers and judges can both be more usefully viewed as trustees than as agents. A trust is a legal institution with rules set up by a settlor, administered by a trustee on behalf of beneficiaries. Public trustees often are motivated more by Pride, Policy, Place, and Power than by money, and economists should take this into


Rasmusen, Eric Bennett (1997), "A Theory of Trustees, and Other Thoughts," in Tahire Akder (ed.), Public Debt and its Finance in a Model of a Macroeconomic Policy Game: Papers Presented at a Workshop held in Antalya, Turkey on October 10-11, 1997.