Bartling, Björn; Fehr, Ernst; Schmidt, Klaus M. - Institute for the Study of Labor (IZA) - 2010
implement a control strategy, which consists of low effort discretion and little or no rent-sharing, or they implement a trust … control strategy prevails, while the possibility of screening renders the trust strategy profitable. The introduction of … competition substantially fosters the trust strategy, reduces market segmentation, and leads to large welfare gains for both …