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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
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Reputations, Relationships and the Enforcement of Incomplete Contracts
MacLeod, W. Bentley - Institute for the Study of Labor (IZA) - 2006
This paper discusses the literature on the enforcement of incomplete contracts. It compares legal enforcement to enforcement via relationships and reputations. A number of mechanisms, such as the repeat purchase mechanism (Klein and Leffler (1981)) and efficiency wages (Shapiro and Stiglitz...
Persistent link: https://www.econbiz.de/10005233793
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Transparency and Reciprocal Behavior in Employment Relations
Irlenbusch, Bernd; Sliwka, Dirk - Institute for the Study of Labor (IZA) - 2003
The impact of transparency on the extent of reciprocal behavior is investigated in a simple repeated gift exchange experiment, where principals set wages and agents respond by choosing effort levels. In addition to the efforts the principals’ payoffs are determined by a random component. It is...
Persistent link: https://www.econbiz.de/10005233886
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Laws and Norms
Benabou, Roland; Tirole, Jean - Institute for the Study of Labor (IZA) - 2012
This paper analyzes how private decisions and public policies are shaped by personal and societal preferences ("values"), material or other explicit incentives ("laws") and social sanctions or rewards ("norms"). It first examines how honor, stigma and social norms arise from individuals'...
Persistent link: https://www.econbiz.de/10009646323
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Dynamic Incentive Contracts under Parameter Uncertainty
Prat, Julien; Jovanovic, Boyan - Institute for the Study of Labor (IZA) - 2010
We analyze a long-term contracting problem involving common uncertainty about a parameter capturing the productivity of the relationship, and featuring a hidden action for the agent. We develop an approach that works for any utility function when the parameter and noise are normally distributed...
Persistent link: https://www.econbiz.de/10008727782
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Coordination under the Shadow of Career Concerns
Koch, Alexander K.; Morgenstern, Albrecht - Institute for the Study of Labor (IZA) - 2009
To innovate, employees need to develop novel ideas and coordinate with each other to turn these ideas into better products and services. Work outcomes provide signals about employees' abilities to the labor market, and therefore career concerns arise. These can both be 'good' (enhancing...
Persistent link: https://www.econbiz.de/10005761666
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Incentives, Decision Frames, and Motivation Crowding Out - An Experimental Investigation
Irlenbusch, Bernd; Sliwka, Dirk - Institute for the Study of Labor (IZA) - 2005
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
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Why Volunteer? Evidence on the Role of Altruism, Reputation, and Incentives
Carpenter, Jeffrey; Myers, Caitlin Knowles - Institute for the Study of Labor (IZA) - 2007
Volunteering plays a prominent role in the charitable provision of goods and services, yet we know relatively little about why people engage in such prosocial acts. The list of possible motivations is long, but recent research has focused on altruism, reputational concerns, and material...
Persistent link: https://www.econbiz.de/10005762134
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Anti-Lemons: School Reputation, Relative Diversity, and Educational Quality
MacLeod, W. Bentley; Urquiola, Miguel - Institute for the Study of Labor (IZA) - 2012
reputation for skill acquisition and labor market outcomes in an otherwise competitive market. We find that reputation effects …) that arises when schools can enhance their reputation by positively selecting their students. This leads to excess demand …
Persistent link: https://www.econbiz.de/10010633000
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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