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We consider rules (strategies, commitments, contracts, or computer programs) that make behavior contingent on an opponent's rule. The set of perfectly observable rules is not well defined. Previous contributions avoid this problem by restricting the rules deemed admissible. We instead limit the...
Persistent link: https://www.econbiz.de/10010437999
endogenous sorting between lengthy and costly firing procedures. The model also rationalizes the longevity of the dual Dutch …
Persistent link: https://www.econbiz.de/10011288790
employees. A series of robustness checks show that these patterns are stronger among higher educated workers; that the sorting …
Persistent link: https://www.econbiz.de/10009752996
, while those with higher productivity export more. These outcomes are the foundation of the widely-used sorting mechanism in …
Persistent link: https://www.econbiz.de/10010256719
In the nineties, average firm size decreased, organisations decentralized, and workers preferences shifted from large to small firms. Our model identifies the economic forces behind this trend. Small firms with little capital at risk are subject to risk-shifting. They realize more of their...
Persistent link: https://www.econbiz.de/10011539048
We consider a simple tournament model in which individuals auto-select into the contest on the basis of their commonly known strength levels, and privately observed strength-shocks (reflecting temporary deviations from observed levels). The model predicts that the participation rate should...
Persistent link: https://www.econbiz.de/10010472714
and empirical literatures, focusing in particular on models of asymmetric tax competition, of taxation and income sorting …
Persistent link: https://www.econbiz.de/10010396544
We investigate the effect of search frictions on labor market sorting by constructing a model which is in line with … derive the necessary and sufficient conditions for sorting in applications as well as matches. We show that positive sorting … is obtained when production complementarities outweigh a force against sorting measured by a quality-quantity elasticity …
Persistent link: https://www.econbiz.de/10012581332
work in the lab and have a relative preference for work perceived as immoral outside the laboratory. We note that sorting …
Persistent link: https://www.econbiz.de/10012257790
increase (decrease) in transactions after a recall. Based on our theoretical model, this suggests that recalls increase sorting …
Persistent link: https://www.econbiz.de/10012300291