performance elasticities are contrary to predictions of agency theory. Both results provide further support to the common belief … that compensation contracts in public corporations seem imperfectly tied to firm performance and managers' tasks. …

On the basis of a real high stakes insurance experiment with small probabilities of losses, we demonstrate that concern … is a more important driver of WTP for insurance than subjective probability estimates when there is ambiguity surrounding … probability insurance "puzzle" well known from the literature, where a part of individuals pays too much and a part nothing for …

contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits …, while the second contract gives an additional sales bonus. Although theory predicts the second contract to be chosen, it is … only rarely chosen in the experimental markets. This behavior is rational given that managers do not play according to the …

The theory of career mobility (Sicherman and Galor 1990) claims that wage penalties for overeducated workers are … compensated by better promotion prospects. Sicherman (1991) was able to confirm this theory in an empirical study. However, the …