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Contracts, fairness, and incentives
Fehr, Ernst; Klein, Alexander; Schmidt, Klaus M. - 2004
We show experimentally that fairness concerns may have a decisive impact on both the actual and the optimal choice of contracts in a moral hazard context. Explicit incentive contracts that are optimal according to self-interest theory become inferior when some agents value fairness. Conversely,...
Persistent link: https://www.econbiz.de/10011449534
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Theories of fairness and reciprocity : evidence and economic applications
Fehr, Ernst; Schmidt, Klaus M. - 2000
Most economic models are based on the self-interest hypothesis that assumes that all people are exclusively motivated by their material self-interest. In recent years experimental economists have gathered overwhelming evidence that systematically refutes the self-interest hypothesis and suggests...
Persistent link: https://www.econbiz.de/10011397676
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Fairness, incentives and contractual incompleteness
Fehr, Ernst; Klein, Alexander; Schmidt, Klaus M. - 2001
We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral hazard context. Incentive contracts that are optimal when there are only selfish actors become inferior when some agents are concerned about fairness. Conversely, contracts that...
Persistent link: https://www.econbiz.de/10011398105
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Transparency is overrated : communicating in a coordination game with private information
Cabrales, Antonio; Drouvelis, Michalis; Gurguc, Zeynep; … - 2017
higher payoffs in the game when the talk is one-way as the truthful reports facilitate desired coordination. …
Persistent link: https://www.econbiz.de/10011761639
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Pre-play communication with forgone costly messages : experimental evidence on forward induction
Blume, Andreas; Kriss, Peter H.; Weber, Roberto A. - 2016
coordination is difficult without a communication option but obtains regularly with mandatory costless pre-play messages. We find … coordination can occur with similar frequency as under costless communication. These findings can be accounted for by …We experimentally study optional costly communication in Stag-Hunt games. Prior research demonstrates that efficient …
Persistent link: https://www.econbiz.de/10011492032
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What you see is all there is
Enke, Benjamin - 2020
News reports and communication are inherently constrained by space, time, and attention. As a result, news sources …
Persistent link: https://www.econbiz.de/10012171711
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An experimental analysis of ending rules in Internet auctions
Ariely, Dan; Ockenfels, Axel; Roth, Alvin E. - 2003
A great deal of late bidding has been observed on internet auctions such as eBay, which employ a second price auction with a fixed deadline. Much less late bidding has been observed on internet auctions such as those run by Amazon, which employ similar auction rules, but use an ending rule that...
Persistent link: https://www.econbiz.de/10011508080
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Back to Kyoto? : US participation and the linkage between R&D and climate cooperation
Buchner, Barbara; Carraro, Carlo; Cersosimo, Igor; … - 2002
The US decision not to ratify the Kyoto Protocol and the recent outcomes of the Bonn and Marrakech Conferences of the Parties drastically reduces the effectiveness of the Kyoto Protocol in controlling GHG emissions. The reason is not only the reduced emission abatement in the US, but also the...
Persistent link: https://www.econbiz.de/10011409394
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A theory of reciprocity
Falk, Armin; Fischbacher, Urs - 2001
This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also by the intention underlying this action. The theory...
Persistent link: https://www.econbiz.de/10011398368
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Appropriating the commons : a theoretical explanation
Falk, Armin; Fehr, Ernst; Fischbacher, Urs - 2001
pool resource (CPR) experiments. The evidence indicates that in standard CPR games without communication and without … sanctioning possibilities inefficient excess appropriation is the rule. However, when communication or informal sanctions are …
Persistent link: https://www.econbiz.de/10011398786