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Learning from Failures : Optimal Contract for Experimentation and Production

Khalil, Fahad - 2019

derive the optimal contract for both experimentation and production when the agent has private information about his … asymmetric information is endogenously determined by the length of the experimentation stage. An optimal contract uses the length …

Persistent link: https://www.econbiz.de/10012892041

Attention-Driven Demand for Bonus Contracts

Dertwinkel-Kalt, Markus - 2019

, competition does not eliminate but rather exacerbates inefficiencies arising from contracting with focused agents. Common contract …

Persistent link: https://www.econbiz.de/10012890631

Observable Strategies, Commitments, and Contracts

Wärneryd, Karl - 2014

We consider rules (strategies, commitments, contracts, or computer programs) that make behavior contingent on an opponent's rule. The set of perfectly observable rules is not well defined. Previous contributions avoid this problem by restricting the rules deemed admissible. We instead limit the...

Persistent link: https://www.econbiz.de/10010435790

Balanced Scorecards : A Relational Contract Approach

Kvaløy, Ola; Olsen, Trond E. - 2021

performance measures. We show that such an index contract may indeed be optimal if performance measures are non-verifiable so that … measurements), the optimal self-enforcing (relational) contract between a principal and a multitasking agent is an index contract …. The weights reflect a trade-off between distortion and precision for the measures. The efficiency of the contract improves …

Persistent link: https://www.econbiz.de/10013243235

Stochastic Contracts and Subjective Evaluations

Lang, Matthias - 2021

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...

Persistent link: https://www.econbiz.de/10013311715

Relational Contracts and Trust in a High-Tech Industry

Calzolari, Giacomo; Felli, Leonardo; Koenen, Johannes; … - 2021

We study how informal buyer-supplier relationships in the German automotive industry affect procurement. Using unique data from a survey focusing on these, we show that more trust, the belief that the trading partner acts to maintain the mutual relationship, is associated with both higher...

Persistent link: https://www.econbiz.de/10013323087

Block-Recursive Equilibria in Heterogenous-Agent Models

Kaas, Leo - 2021

Equilibrium models with heterogeneous agents and aggregate uncertainty are difficult to analyze since policy functions and market prices depend on the cross-sectional distribution over agents’ state variables which is generally a high-dimensional object. This paper develops and applies a...

Persistent link: https://www.econbiz.de/10013314853

Multiple Applications, Competing Mechanisms, and Market Power

Albrecht, James W. - 2019

received by its candidate. When the contract space includes application fees, there exists a continuum of equilibria of which …

Persistent link: https://www.econbiz.de/10012861466

On the Foundations of Competitive Search Equilibrium with and Without Market Makers

Albrecht, James W.; Cai, Xiaoming; Gautier, Pieter; … - 2021

The literature offers two foundations for competitive search equilibrium, a Nash approach and a market-maker approach. When each buyer visits only one seller (or each worker makes only one job application), the two approaches are equivalent. However, when each buyer visits multiple sellers, this...

Persistent link: https://www.econbiz.de/10013220133

Search, Screening and Sorting

Cai, Xiaoming; Gautier, Pieter; Wolthoff, Ronald - 2021

We investigate the effect of search frictions on labor market sorting by constructing a model which is in line with recent evidence that employers collect a pool of applicants before interviewing a subset of them. In this environment, we derive the necessary and sufficient conditions for sorting...

Persistent link: https://www.econbiz.de/10013221175