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We examine the role of CSR as a mechanism for private provision of public goods. We argue that corporations are using CSR to signal high product quality and demonstrate that signaling gives rise to an excessive level of contributions that offsets the positive externality, which causes the...
Persistent link: https://www.econbiz.de/10010404406
principal has a credibility issue with the agent. The agent should be concerned that the principal could misrepresent the … information in order to collect a monetary penalty from him. Restoring credibility may lead to an extreme waste of resources … different parties, while money is equally valuable to all parties. An alternative way to solve the principal’s credibility …
Persistent link: https://www.econbiz.de/10010212662
Decisions to donate time or money for charitable purposes are typically seen as make-or-buy decisions, implying that there should be a clear distinction between individuals engaging in one of these two forms of giving and that this distinction should be somehow linked to opportunity costs. But...
Persistent link: https://www.econbiz.de/10009570044
This paper examines the strategic effects of case preparation in litigation. Specifically, it shows how the pretrial efforts incurred by one party may alter its adversary’s incentives to settle. We build a sequential game with one-sided asymmetric information where the informed party first...
Persistent link: https://www.econbiz.de/10003720823
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redistributing income and affecting signalling incentives is analyzed, as well as extended tax systems that combine income taxation …
Persistent link: https://www.econbiz.de/10012599061
This paper explores students' expectations about the returns to completing higher education and provides first evidence on perceived signaling and human capital effects. We elicit counterfactual labor market expectations for the hypothetical scenarios of leaving university with or without a...
Persistent link: https://www.econbiz.de/10012293817
Incentive contracts for gatekeepers who control patient access to specialist medical services provide too weak incentives to investigate cost further when expected cost of treatment is greater than benefit. Making gatekeepers residual claimants with a fixed fee from which treat-ment costs must...
Persistent link: https://www.econbiz.de/10011511048
We use an incentivized experimental game to uncover heterogeneity in other-regarding preferences among salespeople in a …
Persistent link: https://www.econbiz.de/10011845322