Showing 1 - 10 of 25
In this paper, we propose a new channel of contract design to boost efficiency. If deviating from one's own words induces a self-imposed moral burden, the optimal contracting procedure with regard to cheap talk shall assign the responsibility for installing the nonbinding promise in the contract...
Persistent link: https://www.econbiz.de/10010729803
We report on an experiment investigating whether the Hayak Hypothesis (Smith, 1982)extends to the long run setting. We consider two environments; one with a common pro-duction technology having a U-shaped long run average cost curve and a single competitive equilibrium, and another with a common...
Persistent link: https://www.econbiz.de/10010892126
According to the Greek philosopher Plato “[…] if anyone at all is to have the privilege of lying the rulers of the State […] may be allowed to lie for the public good” (The Royal Lie). To investigate whether The Royal Lie may foster cooperation in public goods provision we experimentally...
Persistent link: https://www.econbiz.de/10011048117
This paper examines the voluntary formation of centralized sanctioning institutions. We introduce a simple model to study institution formation as a second-order cooperation problem where voluntary contributions to a common fund serve as an instrument to finance centralized sanctioning...
Persistent link: https://www.econbiz.de/10011051748
This paper provides experimental evidence on the formation of partial cartels with endogenous coordination. Firms face a coordination challenge when a partial cartel is to be formed as every firm is better off if it is not inside the cartel but is a free-riding outsider. We introduce a...
Persistent link: https://www.econbiz.de/10010956751
We report on an experiment investigating whether the Hayek Hypothesis (Smith, 1982) extends to the long run setting. We consider two environments; one with a common production technology having a U-shaped long run average cost curve and a single competitive equilibrium, and another with a common...
Persistent link: https://www.econbiz.de/10010904018
incentives. This effect is absent in non-western workers. …
Persistent link: https://www.econbiz.de/10010960257
We compare the performance of liability rules for managing environmental disasters when third parties are harmed and cannot always be compensated. A firm can invest in safety to reduce the likelihood of accidents. The firm’s investment is unobservable to authorities. The presence of...
Persistent link: https://www.econbiz.de/10011154906
experiment with funding contracts that differ in the structure of investor repayment and, thus, in their incentives for the …
Persistent link: https://www.econbiz.de/10011155043
This paper analyses the relationship between workers’ gender and monetary incentives in an experimental setting based … results show that women fail to reveal their type, and are less sensitive than men to the monetary incentives of the …
Persistent link: https://www.econbiz.de/10011264254