Showing 1 - 10 of 29
We consider the cost of providing incentives through tournaments when workers are inequity averse and performance … envy depending on the costs of assessing performance. More envious employees are preferred when these costs are high, less …
Persistent link: https://www.econbiz.de/10005696268
Final goods producers, who may be intrinsically honest (a behavioral type) or opportunistic (strategic), play a repeated game of imperfect information with suppliers of an input of variable (and non-verifiable) quality. Returns to cheating are increasing in the proportion of intrinsically honest...
Persistent link: https://www.econbiz.de/10005056810
We study the role of information exchange, leadership and coordination in team or partnership structures. For this purpose, we view individuals jointly engaging in productive processes -- a 'team' -- as endowed with individual and privately held information on the joint production process. Once...
Persistent link: https://www.econbiz.de/10010796798
. We offer an explanation for this observation based on envy among agents in an otherwise standard moral hazard model with …. The necessary compensation for expected envy renders incentive provision more expensive, which generates a tendency … towards flat-wage contracts. Moreover, empirical evidence suggests that social comparisons like envy are more pronounced among …
Persistent link: https://www.econbiz.de/10005785929
Following tournament theory, incentives will be rather low if the contestants of a tournament are heterogeneous. We empirically test this prediction using a large dataset from the German Hockey League. Our results show that indeed the intensity of a game is lower if the teams are more...
Persistent link: https://www.econbiz.de/10008633333
The two sides of envy, destructive and competitive, give rise to qualitatively different equilibria, depending on … efforts to prevent destructive envy of the relatively poor. In the opposite case, the standard "keeping up with the Joneses … nature of these equilibria leads to starkingly contrasting effects of envy on economic performance. From welfare perspective …
Persistent link: https://www.econbiz.de/10008674246
Consumer bankruptcy regulation in the United States as well as in many other countries allow consumers to petition for a partial debt discharge. Usually, a debt release is possible when the debtor behaves in the creditors’ best interest and after filing for bankruptcy signs over her entire...
Persistent link: https://www.econbiz.de/10010942884
This paper examines the positions of Coase and Pigou in regard to the problem of external effects (externalities). Assessing their two most important works, it appears that Coase has a more relevant preference for an evaluation of total efficiency, while Pigou, with some exceptions, is convinced...
Persistent link: https://www.econbiz.de/10011260441
This article analyses the effect of security price on the behaviour of bank securitization. We present a model of bank securitization in which security price together with liquid constraints create the incentive for banks to originate and sell assets backed securities to investors. Banks have a...
Persistent link: https://www.econbiz.de/10009372531
This paper aims at empirically investigating the role of moral hazard in the e¢ ctivity of deposit insurance in achieving banking stability. If the negative e¤ect of deposit insurance on banking stability is through moral hazard, then deposit insurance will be associated with banking...
Persistent link: https://www.econbiz.de/10009644767