We investigate in a laboratory experiment if the experience of economic failure or success shapes people's preferences for redistribution beyond self-interest. Subjects generated a high or a low income either through a lottery or through an effort-based tournament. A sub-set of subjects could...

I analyze a model in which a principal offers a contract to an agent and can influence the agent's marginal return of effort by the choice of the project mission. The principal's and the agents' mission preferences are misaligned, and the agents have unobservable intrinsic motivation levels. I...