Cabrales, Antonio; Charness, Gary; Villeval, Marie-Claire - Institute for the Study of Labor (IZA) - 2006
We devise an experiment to explore the effect of different degrees of competition on optimal contracts in a hidden …-information context. In our benchmark case, each principal is matched with one agent of unknown type. In our second treatment, a principal … probability of trade, and that, overall, competition between agents generates the most efficient outcomes. …