We study, theoretically and empirically, the effects of incentives on the self-selection and coordination of motivated agents to produce a social good. Agents join teams where they allocate effort to either generate individual monetary rewards (selfish effort) or contribute to the production of...

We study experimentally the impact of pre-play social interactions on negotiations. These interactions are often complex. Thus, we attempt to isolate the impact of several of its more common components: conversations, food, and beverages, which could be alcoholic or nonalcoholic. To do this, our...

The widespread use of markets leads to unprecedented material well-being in many societies. We study whether market interaction, as a side effect, erodes moral values. An encompassing understanding of the virtues and vices of markets, including their possible impact on moral values, is necessary...

We experimentally study the impact of framing effects in a repeated sequential social dilemma game. Our between-subjects design consists of two group level (“Wall Street” vs. “Community”) and two individual level (“First (Second) Movers” vs. “Leaders (Followers)”) frames. We find...

This paper develops a framework to understand the role of interpersonal interactions in the labor market including task assignment and wages. Effective interpersonal interactions involve caring, to establish cooperation, and at the same time directness, to communicate in an unambiguous way. The...

Despite indications that people skills are important for understanding individual labor-market outcomes and have become more important over the last decades, there is little analysis by economists. This paper shows that people skills are important determinants of labor-market outcomes, including...

We use novel data from the Berea Panel Study to reexamine the labor market mechanisms generating the beauty wage premium. We find that the beauty premium varies widely across jobs with different task requirements. Specifically, in jobs where existing research such as Hamermesh and Biddle (1994)...

We present a mechanism based on managerial incentives through which common ownership affects product market outcomes. Firm-level variation in common ownership causes variation in managerial incentives and productivity across firms, which leads to intra-industry and intra-firm cross-market...

We study the relationship between outside options and workers’ motivation to exert effort. We evaluate changes in outside options arising from age and experience cutoffs in the Austrian unemployment insurance (UI) system, and use absenteeism as a proxy for worker effort. Results indicate that...