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How do informal agreements and renegotiation shape contractual reference points?
Fehr, Ernst; Hart, Oliver; Zehnder, Christian - Institut für Volkswirtschaftslehre, … - 2011
Previous experimental work provides encouraging support for some of the central assumptions underlying Hart and Moore …
Persistent link: https://www.econbiz.de/10009358972
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Do Incentive Contracts Crowd out Voluntary Cooperation?
Fehr, Ernst; Gaechter, Simon - Institut für Volkswirtschaftslehre, …
than contracts without any incentives. Principals, nonetheless, prefer the incentive contracts because they allow them to …
Persistent link: https://www.econbiz.de/10005627780
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The Hidden Costs and Returns of Incentives - Trust and Trustworthiness among CEOs
Fehr, E.; List, John A. - Institut für Volkswirtschaftslehre, …
We examine experimentally how Chief Executive Officers (CEOs) respond to incentives and how they provide incentives in … higher efficiency levels than students. Moreover, we find that, for CEOs as well as for students, incentives based on … incentives. However, the availability of penalizing incentives also creates hidden returns: if a principal expresses trust by …
Persistent link: https://www.econbiz.de/10005627811
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Efficient Contracting and Fair Play in a Simple Principal-Agent Experiment
Anderhub, Vital; Gaechter, Simon; Koenigstein, Manfred - Institut für Volkswirtschaftslehre, …
We study behavior within a simple principal--agent experiment. Our design allows for a large class of linear contracts …. Principals can offer any feasible combination of (negative) fixed wages and incentives in the form of return sharing. This great …' and reciprocity. In contrast to other incentive devices studied in the literature, the incentives are `reciprocity …
Persistent link: https://www.econbiz.de/10005627819
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Evidence for countercyclical risk aversion: an experiment with financial professionals
Cohn, Alain; Engelmann, Jan; Fehr, Ernst; Maréchal, … - Institut für Volkswirtschaftslehre, … - 2013
A key ingredient of many popular asset pricing models is that investors exhibit countercyclical risk aversion, which helps explain major economic puzzles such as the strong and systematic variation in risk premiums over time and the high volatility of asset prices. There is, however,...
Persistent link: https://www.econbiz.de/10011240398
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Generosity across contexts
Weber, Roberto A.; Davis, Alexander L.; Jehli, Nadja R.; … - Institut für Volkswirtschaftslehre, … - 2011
Extensive research in economics explores generosity in monetary allocations. However, generosity often involves the allocation of non-monetary goods or experiences. Existing evidence suggests that generosity may be higher in such contexts, though no direct comparison exists. Here, we compare...
Persistent link: https://www.econbiz.de/10011203012
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Reverse Common Ratio Effect
Blavatskyy, Pavlo R. - Institut für Volkswirtschaftslehre, … - 2010
The results of a new experimental study reveal highly systematic violations of expected utility theory. The pattern of these violations is exactly the opposite of the classical common ratio effect discovered by Allais (1953). Two recent decision theories— stochastic expected utility theory...
Persistent link: https://www.econbiz.de/10008625739
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Pivotality and responsibility attribution in sequential voting
Bartling, Björn; Fischbacher, Urs; Schudy, Simeon - Institut für Volkswirtschaftslehre, … - 2014
This paper analyzes responsibility attributions for outcomes of collective decision making processes. In particular, we ask if decision makers are blamed for being pivotal if they implement an unpopular outcome in a sequential voting process. We conduct an experimental voting game in which...
Persistent link: https://www.econbiz.de/10011272198
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Betting on Own Knowledge: Experimental Test of Overconfidence
Blavatskyy, Pavlo R. - Institut für Volkswirtschaftslehre, … - 2008
This paper presents a new incentive compatible method for measuring confidence in own knowledge. This method consists of two parts. First, an individual answers several general knowledge questions. Second, the individual chooses among three alternatives: 1) one question is selected at random and...
Persistent link: https://www.econbiz.de/10005463538
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Measuring Social Norms and Preferences using Experimental Games: A Guide for Social Scientists
Camerer, Colin F.; Fehr, Ernst - Institut für Volkswirtschaftslehre, …
Experimental games turned out to be remarkably productive tools for examining the nature of social preferences and social norms. This paper describes the methods and tools of experimental game theory and provides a selection of games that have been useful. We also discuss the role of...
Persistent link: https://www.econbiz.de/10005585655