We study the impact of information manipulation by a principal on the agent’s effort. In a context of asymmetric … information at the principal’s advantage, we test experimentally the principal’s willingness to bias (overestimate or under …-estimate) the information she gives to her agent on his ability in order to motivate him to exert more effort. We find that i …

We devise an experiment to explore the effect of different degrees of competition on optimal contracts in a hidden-information … principals. We first show theoretically how these different degrees of competition affect outcomes and efficiency. Informational … relative number of agents because competition reduces the agents’ informational monopoly power. However, this environment also …

The ‘ratchet effect’ refers to a situation where a principal uses private information that is revealed by an agent … competition for principals or agents. While we do observe substantial and significant ratchet effects in the baseline (no … competition) case of our model, we find that ratchet behavior is nearly eliminated by labor-market competition; interestingly this …

agents are imperfectly informed. Homogeneous landlords set rents to maximise revenue, using information on the market to … search times and vacancies. The main results concern the eects of increasing information on either side of the market. When … and tenants' utilities rise as does overall welfare. Conversely, when landlords have less information, their utility can …

This paper experimentally investigates the impact of different pay and relative performance information policies on … employee effort. We explore three information policies: No feedback about relative performance, feedback given halfway through … since the underdogs almost never quit the competition even when lagging significantly behind, and frontrunners do not slack …

. We show that the “conduct parameter” measuring the intensity of competition is not null during the period 1993 …

to competition. The implication is that it may be beneficial to define additional incentives near the end of the career …

This paper reports on the results of an experiment testing whether the agents selfselect between a competitive payment … payment schemes are endogenously chosen by agents. We show that the choice of the competition is negatively affected by … disadvantageous inequity aversion and risk aversion. In the second half of the experiment, the effect of individual preferences is …