Showing 1 - 10 of 172
This paper analyzes optimal product lines when consumers differ both in their taste for quality and in their desire for social image. The market outcome features partial pooling and product differentiation that is not driven by heterogeneous valuations for quality but by image concerns. A...
Persistent link: https://www.econbiz.de/10011932935
Contracts adopted with later renegotiation in mind may take simple forms. In a principal-agent model, if renegotiation may occur after the agent chooses efforet, the principal protects against unfavorable renegotiation by "selling the project" to the agent via a sales contract. If only singleton...
Persistent link: https://www.econbiz.de/10012235864
Sales contracts emerge when a principal and an agent in amoral hazard environment cannot prevent themselves from renegotiating their contract. The renegotiation occurs after the agent chooses his unobservable effort, but before its consequences are realized. Unlike previous analyses, a contract...
Persistent link: https://www.econbiz.de/10012235765
While it is a stylized fact that exporting firms pay higher wages than non-exporting firms, the direction of the link … between exporting and wages is less clear. Using a rich set of German linked employer-employee panel data we follow over time …
Persistent link: https://www.econbiz.de/10005860990
local workers in agriculture. We exploit an 8% tax that was assessed on the wages of foreign workers in 2003. If foreign … tax, and their wages should increase, unless their supply is perfectly elastic. On the other hand, if unskilled workers …, foreign or local, are complements to skilled agricultural workers, the demand of the latter should decline, and their wages …
Persistent link: https://www.econbiz.de/10013241950
This paper examines the changes in the wages of different types of workers in different industries during a period in … manufacturing, compared to all other industries. We find that the wages of unskilled workers in agriculture decreased compared to … the other industries, while the wages of skilled workers and other occupations increased. This is consistent with the view …
Persistent link: https://www.econbiz.de/10013241951
Although gambling is primarily an economic activity, no single theory of the demand for gambles has gained wide-spread acceptance among economists. This paper proposes a simple model of the demand for gambling that is based on the standard economic assumptions that (1) resources are scarce and...
Persistent link: https://www.econbiz.de/10010282070
This paper analyzes consumers' privacy choice concerning their private data and firms' ensuing pricing strategy. The General Data Protection Regulation passed by the European Union in May 2018 allows consumers to decide whether to reveal private information in the form of cookies to an online...
Persistent link: https://www.econbiz.de/10012290359
Current time allocation and household production models face three major weaknesses: First, they only describe the average time allocation. Thus, information about the order of activities is lost. Therefore, it is impossible to describe the influence of activities on later ones. Such...
Persistent link: https://www.econbiz.de/10014483894
In this paper, we match data on student performance in a multiple-choice exam with data on student risk preferences that are extracted from a classroom experiment. We find that more-loss-averse students leave more questions unanswered and perform worse in the multiple-choice exam when giving an...
Persistent link: https://www.econbiz.de/10012141888