We examine the optimal organizational form of project evaluation and implementation under moral hazard. In the evaluation phase, two fallible risk-neutral agents sequentially screen projects. The approved projects are subsequently implemented in the development phase. We show that moral hazard...

We suggest a parsimonious dynamic agency model in which workers have status concerns. A firm is a promotion hierarchy in which a worker’s status depends on past performance. We investigate the optimality of two types of promotion hierarchies: (i) internal labor markets, in which agents have a...

We suggest a parsimonious dynamic agency model in which workers have status concerns. A firm is a promotion hierarchy in which a worker's status depends on past performance. We investigate the optimality of two types of promotion hierarchies: (i) internal labor markets, in which agents have a...

"This article examines whether a principal prefers to hire a fair or a selfish agent. A fair agent cares to some extent for the well-being of other people and thus he also cares for the principal. Therefore, if the agent performs individual work, the principal is always better off to hire a fair...

In this unique book, Peter-J. Jost provides a comprehensive economic-psychological approach for successfully managing employees. Based on the analysis of the employee’s individual work behavior, he illustrates that instead of treating employees as input elements of production, and managing and...

We consider an R&D contest between n firms in the presence of external spillovers. Our analysis focuses on the effects of these spillovers on joint venture activities between firms. In particular, we are interested in how different budget responsibilities within the research joint venture (RJV)...

The paper provides a framework in which suppliers of experience goods find it in their best interest to provide and enforce quality standards. This self-regulatory outcome is compared to various forms of statutory regulation, such as price regulation and quality regulation. The comparision is...