exogenous risk and delegation. That is, we show that only if exogenous risk is sufficiently large, the risk-neutral principal … may prefer to delegate authority over decisions to the risk-averse agent. Intuitively, for incentive reasons, the … principal may optimally want to allow the agent to reduce his risk exposure. Nevertheless, even endogenous risk may be higher …

We analyze the role of risk-sharing institutions in transitions to modern economies. Transitions requires individual …-level risk-taking in pursuing productivity-enhancing activities including using and developing new knowledge. Individual …-level, idiosyncratic risk implies that distinct risk-sharing institutions - even those providing the same level of insurance - can lead to …

ineffective. We can rationalize this result with a novel model about the credibility of cheap-talk messages. This credibility is … credibility and show, both theoretically and experimentally, an interaction effect of network structure and communication …

Trust is a concept that has attracted significant attention in economic theory and research within the last two decades … that it correlates with trusting behaviour in the experiment. Both survey and experimental measure correlate with related … factors such as risk aversion, being an entrepreneur or a shareholder. Furthermore, we demonstrate that the survey measure …

We present a household production model that incorporates multitasking and results from a customized experiment …

the bargaining process itself. This approach leads to a new theory of wage determination. …

of religious behaviour towards Theoi in the laboratory. The theory we test is that, when faced with uncertainty …