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Moral Hazard and Unemployment in Competitive Equilibrium
Rey, Patrick; Stiglitz, Joseph E. - National Bureau of Economic Research - 2024
Principal-agent models take outside options, determining participation and incentive constraints, as given. We construct a general equilibrium model where workers' reservation wages and the maximum punishment acceptable before workers quit are instead determined endogenously. We simultaneously...
Persistent link: https://www.econbiz.de/10014635663
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On the Role of Learning, Human Capital, and Performance Incentives for Wages
Camargo, Braz; Lange, Fabian; Pastorino, Elena - National Bureau of Economic Research - 2022
Performance pay in general amounts to only a small fraction of total pay. In this paper, we show that performance pay is nevertheless important for the level and dynamics of wages over the life cycle because of the incentives it indirectly provides for human capital acquisition and because of...
Persistent link: https://www.econbiz.de/10013334409
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Information and Market Power in DeFi Intermediation
Azar, Pablo D.; Casillas, Adrian; Farboodi, Maryam - National Bureau of Economic Research - 2024
This paper considers the "DeFi intermediation chain"--the market structure that underlies the creation and distribution of ETH, the native cryptocurrency of Ethereum--to examine how information asymmetry shapes intermediation rents. We argue that using proof-of-stake blockchain technology in...
Persistent link: https://www.econbiz.de/10015072890
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Incentive Contracts
Lazear, Edward P. - 1986
Persistent link: https://www.econbiz.de/10012477157
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A Comparison of Tournaments and Contracts
Green, Jerry R. - 1982
Tournaments, reward structures based on rank order, are compared with individual contracts in a model with one risk-neutral principal and many risk-averse agents. Each agents' output is a stochastic function of his effort level plus an additive shock term that is common to all the agents. The...
Persistent link: https://www.econbiz.de/10012478271
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Venture Capital Contracts
Ewens, Michael - 2019
We estimate the impact of venture capital (VC) contract terms on startup outcomes and the split of value between the … power to receive more investor-friendly terms compared to the contract that maximizes startup values. Better VCs still … certain contract terms benefits entrepreneurs and enables low-quality entrepreneurs to finance their startups more quickly …
Persistent link: https://www.econbiz.de/10012480061
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Inventor Moral Hazard in University Licensing : The Role of Contracts
Dechenaux, Emmanuel - 2008
We examine commonly observed forms of payment, such as milestones, royalties, or consulting contracts as ways of engaging inventors in the development of licensed inventions. Our theoretical model shows that when milestones are feasible, royalties are not optimal unless the licensing firm is...
Persistent link: https://www.econbiz.de/10012464422
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Long-Term Contracts, Commitment, and Optimal Information Disclosure
Dovis, Alessandro; Martellini, Paolo - National Bureau of Economic Research - 2024
This paper studies optimal information disclosure in dynamic insurance economies with income risk in which an incumbent … incumbent can commit to long-term contracts but the consumer can walk away, the optimal disclosure prescribes no information …-income consumers is feasible for any public information disclosure because of adverse selection. We show that partial information …
Persistent link: https://www.econbiz.de/10015094893
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Naked Exclusion : An Experimental Study of Contracts with Externalities
Landeo, Claudia M. - 2008
induces more generous contract terms from the seller. When discrimination and communication are possible, the exclusion rate … preferred equilibrium. Two-way non-binding pre-play communication among the buyers lowers the power of exclusive contracts and …
Persistent link: https://www.econbiz.de/10012464530
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Bayesian Persuasion with Lie Detection
Ederer, Florian; Min, Weicheng - National Bureau of Economic Research - 2022
How does lie detection constrain the potential for one person to persuade another to change her action? We consider a model of Bayesian persuasion in which the Receiver can detect lies with positive probability. We show that the Sender lies more when the lie detection probability increases. As...
Persistent link: https://www.econbiz.de/10013210093