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How do peers influence the impact of incentives? Despite much work on incentives, little is known about the spillover … effects of incentives. We investigate two mechanisms by which these effects can occur: through peers' actions and peers …' incentives. In a field experiment on snack choice (grapes versus cookies), we randomize who receives incentives, the fraction of …
Persistent link: https://www.econbiz.de/10012457187
Educators worry that high-stakes testing will induce teachers and their students to focus only on the test and ignore other, untested aspects of knowledge. Some counter that although this may be true, knowing something is better than knowing nothing and many students would benefit even by...
Persistent link: https://www.econbiz.de/10012467755
This paper offers some observations on employee crime, economic theories of crime, limits on bonding, and the efficiency wage hypothesis. We demonstrate that the simplest economic theories of crime predict that profit-maximizing firms should follow strategies of minimal monitoring and large...
Persistent link: https://www.econbiz.de/10012476712
When an upstream monopolist supplies several competing downstream firms, it may fail to monopolize the market because it is unable to commit not to behave opportunistically. We build on previous experimental studies of this well-known commitment problem by introducing communication. Allowing the...
Persistent link: https://www.econbiz.de/10012456456
We study the calculation of exact p-values for a large class of non-sharp null hypotheses about treatment effects in a setting with data from experiments involving members of a single connected network. The class includes null hypotheses that limit the effect of one unit's treatment status on...
Persistent link: https://www.econbiz.de/10012457354
are linked to economic theory. We then use this system to classify all published field experiments in the five top … period, we find that economic theory has played a more central role in the laboratory than in the field. Finally, we discuss …
Persistent link: https://www.econbiz.de/10012461611
This paper explores sources of complexity in dynamic optimization, examining how individuals navigate variation in incomes, prices, and returns in ten-period consumption-saving decisions. Our findings reveal that dynamic optimization poses significant challenges, resulting in suboptimal choices...
Persistent link: https://www.econbiz.de/10015056146
In an earlier work, we analyzed how the legal rules governing contractual liability affect the transfer of information between the parties to the contract. In particular, we showed how limitations on contractual liability might lead high valuation buyers to reveal their valuation of performance,...
Persistent link: https://www.econbiz.de/10012471688
In this paper, the choice between public and private provision of goods and services is considered. In practice, both modes of operation involve significant delegation of authority, and thus appear quite similar in some respects. The argument here is that the main difference between the two mod-...
Persistent link: https://www.econbiz.de/10012476874
or responsiveness to financial incentives. In the frontier literature productive efficiency is assumed to be exogenously … with theoretical work on internal theory of the firm, which predicts that productivity compensation schemes will work well … production, as theory has hypothesized. The number of members in a group decreases both the quantity produced and the efficiency …
Persistent link: https://www.econbiz.de/10012476899