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Experts' Awards and Economic Success: Evidence from an Italian Literary Prize

Ponzo, Michela; Scoppa, Vincenzo - Institute for the Study of Labor (IZA) - 2015

Product quality is often unobservable ex-ante and consumers rely on experts' judgments, sometimes in the form of ratings or awards. Do awards affect consumers' choices or, conversely, are they conferred on the most popular products? To disentangle this issue, we use data about the most important...

Persistent link: https://www.econbiz.de/10011167199

Relational Contracts and the Economic Well-Being of Nations

Kukharskyy, Bohdan; Pflüger, Michael P. - Institute for the Study of Labor (IZA) - 2010

Informal long-term relationships and mutual confidence play a crucial role in modern economies in at least two dimensions. First, the performance of firms is strongly affected by their capacity to solve organizational questions effectively and this capacity is apparently strongly related to...

Persistent link: https://www.econbiz.de/10008777145

Delegation of Authority as an Optimal (In)complete Contract

Roider, Andreas - Institute for the Study of Labor (IZA) - 2004

The present paper aims to contribute to the literature on the foundations of incomplete contracts by providing conditions under which simple delegation of authority is the solution to the complete-contracting problem of the parties. We consider a hold-up framework where both parties profit from...

Persistent link: https://www.econbiz.de/10005566762

Social Evolution, Corporate Culture, and Exploitation

Schlicht, Ekkehart - Institute for the Study of Labor (IZA) - 2002

It has been claimed that the market fosters selfishness and thereby undermines the moral basis of society. This thesis has been developed with an emphasis on market exchange. Everyday life is, however, predominantly shaped by interactions in the workplace rather than by shopping behaviour. This...

Persistent link: https://www.econbiz.de/10005566784

Identity Changes and the Efficiency of Reputation Systems

Wibral, Matthias - Institute for the Study of Labor (IZA) - 2014

Reputation systems aim to induce honest behavior in online trade by providing information about past conduct of users …. Online reputation, however, is not directly connected to a person, but only to the virtual identity of that person. Users can … therefore shed a negative reputation by creating a new account. We study the effects of such identity changes on the efficiency …

Persistent link: https://www.econbiz.de/10010884234

Mixed Up? That's Good for Motivation

Koch, Alexander K.; Peyrache, Eloic - Institute for the Study of Labor (IZA) - 2004

An essential ingredient in models of career concerns is ex ante uncertainty about an agent's type. This paper shows how career concerns can arise even in the absence of any such ex ante uncertainty, if the unobservable actions that an agent takes influence his future productivity. By...

Persistent link: https://www.econbiz.de/10005703606

From Team Spirit to Jealousy: The Pitfalls of Too Much Transparency

Koch, Alexander K.; Morgenstern, Albrecht - Institute for the Study of Labor (IZA) - 2005

Free riding in team production arises because individual effort is not perfectly observable. It seems natural to suppose that greater transparency would enhance incentives. Therefore, it is puzzling that team production often lacks transparency about individual contributions despite negligible...

Persistent link: https://www.econbiz.de/10005703696

Moral Hazard Contracts: Does One Size Fit All?

Koch, Alexander K.; Peyrache, Eloïc - Institute for the Study of Labor (IZA) - 2006

Incentive theory predicts that contract terms should respond to differences in agents’ productivities. Firms’ practice of anonymous contracts thus appears puzzling. We show that such a "one-size-fits-all" approach can be reconciled with standard agency theory if careers are marked by...

Persistent link: https://www.econbiz.de/10005703757

Tournaments, Individualized Contracts and Career Concerns

Koch, Alexander K.; Peyrache, Eloïc - Institute for the Study of Labor (IZA) - 2005

Young professionals typically do not enter into life-long employment relations with a single firm. Therefore, future employers can learn about individuals' abilities from the observable facts regarding earlier work relations. We show that these informational spill-overs have profound...

Persistent link: https://www.econbiz.de/10005700845

Aligning Ambition and Incentives

Koch, Alexander K.; Peyrache, Eloïc - Institute for the Study of Labor (IZA) - 2005

In many economic situations several principals contract with the same agents sequentially. Asymmetric learning about agents' abilities provides the first principal with an informational advantage and has profound implications for the design of incentive contracts. We show that the principal...

Persistent link: https://www.econbiz.de/10005566560

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