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provided more efficiently through other forms of social or private insurance. In theory, a negligence rule creates incentives … physicians is sued per year. These discrepancies between the theory and actual operation of the negligence system arise primarily …
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these three kinds of decisions, normative theories such as expected utility theory can be used as benchmarks against which …
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We study product market competition between firm owners (principals) where workers (agents) decide on their efforts and, hence, on output levels. Two worker compensation schemes are compared: a piece rate compensation as a benchmark when workers' output performance is verifiable, and a...
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