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Subjective performance evaluations are commonly used to provide feedback and incentives to workers. However, such evaluations can generate significant disagreements and conflicts, the severity of which may be driven by many factors. In this paper we show that a workers’ level of...
Persistent link: https://www.econbiz.de/10011932075
Subjective performance evaluations are commonly used to provide feedback and incentives to workers. However, such evaluations can generate significant disagreements and conflicts, the severity of which may be driven by many factors. In this paper we show that a workers’ level of...
Persistent link: https://www.econbiz.de/10012892258
enforcement behavior in a market with incomplete contracts and repeated interactions. Dismissal barriers are shown to have a …
Persistent link: https://www.econbiz.de/10010264349
We show how sanctioning is more effective in increasing cooperation between groups than within groups. We study this using a trust game among ethnically diverse subjects in Afghanistan. In the experiment, we manipulate i) sanctioning and ii) ethnic identity. We find that sanctioning increases...
Persistent link: https://www.econbiz.de/10011931929
Subjective evaluations are widely used, but call for different contracts from traditional moral-hazard settings …. Previous literature shows that contracts require payments to third parties, which real-world contracts rarely use. I show that … the implicit assumption of deterministic contracts makes payments to third parties necessary. This paper studies …
Persistent link: https://www.econbiz.de/10012799758
hazard. Contracts negotiated by firm/employee pairs follow from Nash bargaining. High- and low-skilled employees specialize …
Persistent link: https://www.econbiz.de/10013353365
Should principals explain and justify their evaluations? Suppose the principal's evaluation is private information, but she can provide justification by sending a costly cheap-talk message. If she does not provide justification, her message space is restricted, but the message is costless. I...
Persistent link: https://www.econbiz.de/10010398669
We study an important mechanism underlying employee referrals into informal low skilled jobs in developing countries. Employers can exploit social preferences between employee referees and potential workers to improve discipline. The profitability of using referrals increases with referee stakes...
Persistent link: https://www.econbiz.de/10010317024
hazard. Contracts negotiated by firm/employee pairs follow from Nash bargaining. High- and low-skilled employees specialize …
Persistent link: https://www.econbiz.de/10014083473
' reaction to unplanned events, they might agree to pay higher costs of negotiation to complete contracts. Using a unique sample … of U.S. principal-agent consulting contracts and a negative shock to trust between parties staggered across space and … states of the world contracts cover increase after a drop in trust. The results hold for several text-analysis-based measures …
Persistent link: https://www.econbiz.de/10013314897