Showing 1 - 10 of 1,698
Empirical literature on moral hazard focuses exclusively on the direct impact of asymmetric information on market outcomes, thus ignoring possible repercussions. We present a field experiment in which we consider a phenomenon that we call second-degree moral hazard – the tendency of the supply...
Persistent link: https://www.econbiz.de/10013061956
fixed number of points that help take the campaign further.We compare low and high levels of such incentives for direct … (where referred contacts refer others). We find that providing high level of incentives results in a statistically …
Persistent link: https://www.econbiz.de/10013034083
While strong social ties help individuals cope with missing institutions, trade is essentially limited to those who are part of the social network. We examine what makes the decision to trust a stranger different from the decision to trust a member of a given social network (a friend), by...
Persistent link: https://www.econbiz.de/10013087403
We develop a model of job search and use it to assess the effects that the Brazilian unemployment benefit system has on exit rates from unemployment. In our setup, unemployed workers receive job offers from the formal and informal sectors and decide whether to accept them or wait. Only jobs in...
Persistent link: https://www.econbiz.de/10013130452
We present evidence on social incentives in the workplace, namely on whether workers' behavior is affected by the … are paid piece rates based on individual productivity, social incentives can be quantified in monetary terms and are such … productivity by 10%. The distribution of worker ability is such that the net effect of social incentives on the firm's aggregate …
Persistent link: https://www.econbiz.de/10013134643
endogenized. We show that graduate taxes reduce work incentives but provide incentives to improve teaching quality. Yet if tax …
Persistent link: https://www.econbiz.de/10013135633
This paper studies the interplay between economic incentives and social norms in firms. We introduce a general … also show how social norms can induce multiplicity of equilibria and how steeper economic incentives can reduce effort …
Persistent link: https://www.econbiz.de/10013136669
in a simple model that the perceived degree of past differentiation affects future incentives. We then study the impact …
Persistent link: https://www.econbiz.de/10013118767
We investigate the influence of two widespread compensation schemes, individual piece-rates and team incentives, on … pronounced under team incentives than under individual piece-rates, which highlights a so far fairly neglected feature of these …
Persistent link: https://www.econbiz.de/10013120402
divisions to replace high incentive pay to the division heads by incentives based on private benefits of control. In that …
Persistent link: https://www.econbiz.de/10013084675