Showing 1 - 10 of 10
We explore how inherent preferences for reciprocity and repeated interaction interact in an optimal incentive system …. Developing a theoretical model of a long-term employment relationship, we first show that reciprocal preferences are more … rents can be used to provide incentives. Preferences for reciprocity still affect the structure of an employment …
Persistent link: https://www.econbiz.de/10012947453
We analyze how agents' present bias affects optimal contracting in an infinite-horizon employment setting. The principal maximizes profits by offering a menu of contracts to naive agents: a virtual contract - which agents plan to choose in the future - and a real contract which they end up...
Persistent link: https://www.econbiz.de/10012978071
In a two-period model, firms specialized in two different sectors lobby to induce the government to subsidize the type of education complementary to their production. Lobbying is endogenous. We show that, if lobbying is not costly, both sectors will lobby in equilibrium and education policy will...
Persistent link: https://www.econbiz.de/10013125068
In a two-period model, firms specialized in two different sectors lobby to induce the government to subsidize the type of education complementary to their production. Lobbying is endogenous. We show that, if lobbying is not costly, both sectors will lobby in equilibrium and education policy will...
Persistent link: https://www.econbiz.de/10009020097
This paper applies the theory of relational contracts to a model in which a couple decides whether to marry or cohabit, how many children to have and subsequently whether to stay together or separate. We make precise the idea that cooperation in a household can be supported by self interest....
Persistent link: https://www.econbiz.de/10013117792
The need to give incentives is usually absent in the literature on minimum wages. However, especially in the service sector it is important how well a job is done, and employees must be incentivized to perform accordingly. Furthermore, many aspects regarding service quality cannot be verified,...
Persistent link: https://www.econbiz.de/10012985792
In an overlapping generations model with two social classes, rich and poor, parents of the different social classes vote on two issues: redistributive policies for them and education investment for their children. Public education is the engine for growth through its effect on human capital; but...
Persistent link: https://www.econbiz.de/10013317185
We empirically investigate the determinants of the female decision of investing in post-secondary education, focusing on the role played by the context where young women take their education decision. We first develop a stylized two-period model to analyze the female decision of investing in...
Persistent link: https://www.econbiz.de/10013127634
We empirically investigate the determinants of the female decision of investing in post-secondary education, focusing on the role played by the context where young women take their education decision. We first develop a stylized two-period model to analyze the female decision of investing in...
Persistent link: https://www.econbiz.de/10008914273
This paper applies the theory of relational contracts to a model in which a couple decides whether to marry or cohabit, how many children to have and subsequently whether to stay together or separate. We make precise the idea that cooperation in a household can be supported by self interest....
Persistent link: https://www.econbiz.de/10009371343