the agent's motivation to perform well. Before the agent chooses his performance, the principal in our experiment decides …

effort. Self-confidence thus enhances motivation, and this gives a time--inconsistent individual a strong incentive to build …

- as stressed by psychologists - in that they undermine intrinsic motivation. As a result, they may be only weak … motivation, while offers of help may create a dependence. More generally, we identify when the hidden costs of rewards are a myth …

credit markets. Due to the financial imperfections, high-productivity firms - which are run by entrepreneurs - must be …

In the course of ordinary business, commercial banks frequently encounter entrepreneurs seeking loans for the purpose … of financing new or continuing projects. These entrepreneurs are frequently unrealistic, their perception having been … relationship between banks and possible optimistic entrepreneurs. We examine this capital market from the stand-point of economic …