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Information, Coordination, and the Industrialization of Countries

Englmaier, Florian; Reisinger, Markus - 2006

appropriate information provision enhances efficiency. We discuss extensions of the model and argue that subsidies may be a … property of a signalling equilibrium to overcome credibility problems in information provision. In addition we point out … possible problems with overreaction to public information. Furthermore, we suggest a new focus for development policy. …

Persistent link: https://www.econbiz.de/10010333827

Optimal Incentive Contracts under Moral Hazard When the Agent is Free to Leave

Englmaier, Florian; Muehlheusser, Gerd; Roider, Andreas - 2010

We characterize optimal incentive contracts in a moral hazard framework extended in two directions. First, after effort provision, the agent is free to leave and pursue some ex-post outside option. Second, the value of this outside option is increasing in effort, and hence endogenous. Optimal...

Persistent link: https://www.econbiz.de/10010333930

Commitment in R&D Tournaments via Strategic Delegation to Overoptimistic Managers

Englmaier, Florian - 2010

This paper shows that it is profitable for a firm to hire an overoptimistic manager to commit to a certain investment strategy in an R&D tournament situation. In the unique symmetric equilibrium, all firms delegate to overoptimistic managers, where the optimal degree of overoptimism depends on...

Persistent link: https://www.econbiz.de/10010333715

When protection becomes exploitation : the impact of firing costs on present-biased employees

Englmaier, Florian; Fahn, Matthias; Glogowsky, Ulrich; … - 2023

Employment protection harms early-career employees without benefitting them in later career stages (Leonardi and Pica, 2013). We demonstrate that this pattern can result from employers exploiting na¨ıve present-biased employees. Employers offer a dynamic contract with low early-career wages,...

Persistent link: https://www.econbiz.de/10014512416