The ex ante incentive compatible core of an exchange economy with private information is the (standard) core of a … incentive compatible core can be empty, even if utility functions are quasi-linear. If, in addition to quasi-linearity, further … assumptions are made (like independent private values), the non-emptiness of the core follows nevertheless from d'Aspremont and …

bargaining, leading to stronger effort incentives and higher output. However, it also reduces incentives for labor market …

reduce the effort costs of a worker, and analyze the optimal combination of motivational effort and monetary incentives. We … conditions under which monetary incentives and motivational effort are substitutes or complements, and show that motivational …