Showing 1 - 10 of 203
We study the impact of reputational incentives in markets characterized by moral hazard problems. Social preferences have been shown to enhance contract enforcement in these markets, while at the same time generating considerable wage and price rigidity. Reputation powerfully amplifies the...
Persistent link: https://www.econbiz.de/10005822329
We provide evidence on how two important types of institutions – dismissal barriers, and bonus pay – affect contract enforcement behavior in a market with incomplete contracts and repeated interactions. Dismissal barriers are shown to have a strong negative impact on worker performance, and...
Persistent link: https://www.econbiz.de/10005763505
We develop a new experiment to study the emergence of welfare-reducing bilateral alliances within larger groups, and … curtailing welfare reducing reciprocity, i.e. 'back-scratching'. …
Persistent link: https://www.econbiz.de/10011268879
A simple principal agent problem is experimentally investigated in which a principal repeatedly sets a wage and an agent responds by choosing an effort level. The principal's payoff is determined by the agent's effort. In a first setting the principal can only set a fixed wage in each period. In...
Persistent link: https://www.econbiz.de/10005761948
of the U.S. population, oversampling immigrants, to study trust, positive, and negative reciprocity between first …
Persistent link: https://www.econbiz.de/10008560396
report on the results of an experiment designed to evaluate two distinct explanations for this phenomenon, indignation and … group reciprocity. We find evidence in favor of both, with the caveat that the incidence of indignation-driven sanctions is …
Persistent link: https://www.econbiz.de/10005822220
altruism. Instead, we posit that social reciprocity is a triggered normative response. Our experiment confirms the existence of …We define social reciprocity as the act of demonstrating one's disapproval, at some personal cost, for the violation of … widely-held norms (e.g., don't free ride). Social reciprocity differs from standard notions of reciprocity because social …
Persistent link: https://www.econbiz.de/10005823004
behavior is almost non-existent. We study sabotage in tournaments in a controlled laboratory experiment and are able to confirm …
Persistent link: https://www.econbiz.de/10004980267
In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We allow for capital and firm mobility in a model where the government chooses the level of wage, source-based capital and profit taxation. The taxing choices of governments are...
Persistent link: https://www.econbiz.de/10005233732
The establishment of the free agency system in the 1970s resulted in large salary increases among professional baseball players. Historical data show that players have tended to perform better at early stages of their careers since free agency was introduced. Under the current salary bargaining...
Persistent link: https://www.econbiz.de/10008466464