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Optimal incentive contracts for a worker who envies his boss : presented at CESifo Venice Summer Institute, Workshop on Dissecting Globalization, July 2004
Dur, Robert A. J.; Glazer, Amihai - 2004
A worker's utility may increase in his own income, but envy can make his utility decline with his employer's income … various assumptions about the object and generality of envy. Envy amplifies the effect of incentives on effort and, therefore …, increases optimal incentive pay. Moreover, envy can make profitsharing optimal, even when the worker's effort is fully …
Persistent link: https://www.econbiz.de/10011450877
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Altruism and envy in contests : an evolutionarily stable symbiosis
Konrad, Kai A. - 2002
Altruists and envious people who meet in contests are symbionts. They do better than a population of narrowly rational individuals. If there are only altruists and envious individuals, a particular mixture of altruists and envious individuals is evolutionarily stable.
Persistent link: https://www.econbiz.de/10011514081
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Present-biased envy, inequality, and growth
Borissov, Kirill; Pakhnin, Mikhail; Wendner, Ronald - 2024
We take into account that envy (relative consumption concerns) is more pronounced in the present than in the future. We … exogenous parameters. Agents' preferences exhibit present-biased envy: agents are naive and care about how their consumption … levels compare to that of others in the current period. Our results suggest that present-biased envy affects both the level …
Persistent link: https://www.econbiz.de/10014528209
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Incentives and workers' motivation in the public sector : presented at CESifo Area Conference on Public Sector Economics, May 2004
Delfgaauw, Josse; Dur, Robert A. J. - 2004
Civil servants have a bad reputation of being lazy. However, citizens' personal experiences with civil servants appear to be significantly better. We develop a model of an economy in which workers differ in laziness and in public service motivation, and characterise optimal incentive contracts...
Persistent link: https://www.econbiz.de/10011449658
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Risk taking, limited liability and the competition of bank regulators
Sinn, Hans-Werner - 2001
Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank to undercapitalise and finance overly risky business projects. To counter this market failure, national governments have imposed solvency constraints on banks. However, these...
Persistent link: https://www.econbiz.de/10011400902
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Optimum and risk-class pricing of annuities
Sheshinski, Eytan - 2003
When information on longevity (survival functions) is unknown early in life, individuals have an interest to insure themselves against future "risk-class" classification. Accordingly, the First-Best typically involves transfers across states of nature. Competitive equilibrium cannot provide such...
Persistent link: https://www.econbiz.de/10011506208
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The signaling role of municipal currencies in local development
Jayaraman, Rajshri; Oak, Mandar - 2003
The last decade has seen the burgeoning of several hundred local community currency institutions in cities across the world. Although residents of these communities claim that local currency promotes local development, how if at all it does so has hitherto been unexplored. This paper argues that...
Persistent link: https://www.econbiz.de/10011507689
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Time, risk, precommitment, and adverse selection in competitive insurance markets
Pauly, Mark V. - 2003
This informal paper explores models of competitive insurance market equilibrium when individuals of initially similar apparent risk experience divergence in risk levels over time. The information structure is modeled in three alternative ways: all insurers and insureds know risk at any point in...
Persistent link: https://www.econbiz.de/10011511061
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The dead-anyway effect revis(it)ed
Breyer, Friedrich; Felder, Stefan - 2002
In the expected-utility theory of the monetary value of a statistical life, the so-called dead-anyway effect discovered by Pratt and Zeckhauser (1996) asserts that an individuals' willingness to pay (WTP) for small reductions in mortality risk increases with the initial level of risk. Their...
Persistent link: https://www.econbiz.de/10011514002
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E-exchange and the boundary between households and organizations
Lindbeck, Assar; Wikström, Solveig - 2002
The new information and communication technology, ICT, induces households to take over tasks from firms and government agencies, using tools and systems provided by these very same organizations. The result is often joint production activities. We argue that the importance of ICT for the...
Persistent link: https://www.econbiz.de/10011514007