We present a model where the probability distribution over the space of an agent's achievements depends not only on her ability and effort, but also on the goals set for her. The agent chooses her effort according to her utility net of perceived cost of effort. This cost is inversely...

We model the emulation between two athletes whose goals are fixed by their coaches. The coaches in turn engage in a game of goal setting. We analyze the equilibriums of that game. For some range of parameter values, there are only mixed equilibriums, where one coach randomizes his goals while...

We show that goal setting influences effort level, and that an appropriately set goal can enhance performance. We derive an inverted U-shaped relationship between the goal and the effort level. We then extend the model to a two-period framework, and demonstrate that the goal level set for period...

There has been a shift of manufacturing industries from OECD countries to emerging countries. In a competitive global economy increases in productivity in any country are generally welfare-enhancing. The established industrialised countries can suffer from the collapse of some industries, and...

Parents care about their children, spend resources on educating them and bequeath them some physical and/or human capital. Here we argue that the actions of the parents have an influence, not only on the productive possibilities open to the children (through the capital they inherit) but also on...