This paper compares benefits and costs related to hierarchical and decentralized organizations in an agency framework. We show that the relative efficiency of hierarchy diminishes in contexts with asymmetric information. When effort is not observable, performance-related pay is required in order...

We analyse peer effects among students of a middle-sized Italian public university. We explain students' average grade in exams passed during their Second Level Degree course on the basis of their pre-determined measures of abilities, personal characteristics and peer group abilities. Thanks to...

A large empirical evidence shows that on-the-job training paid by firms is mainly directed towards high educated workers. In order to explain this phenomenon, we propose two simple models adopting the assumption that education has a positive influence on the efficiency with which individuals...

In this paper, we examine the allocation of tasks between a principal and an agent considering their incentives to provide effort, their different abilities in handling tasks, and transmission costs. We focus our attention on two tasks: the first may be handled by the principal or by the agent,...

This paper analyses the choice between a centralized and a decentralized organizational structure focusing on the relationship existing between the allocation of decision rights, the degree of observability of effort and the use of different compensation systems. Profitable production is...

"Does the peer effect vary with the field of study? Using data from a middle-sized public university located in southern Italy and exploiting the random assignment of first-year students to college accommodation, we find that roommate peer effects for freshmen enrolled in the hard sciences are...

The delegation of tasks to a subordinate and his access to key firm resources allow an organization to make optimal use of his knowledge and ability, but at the same time, thanks to on-the-job learning and the possibility of expropriation of these resources, this might increase the agent's...

We exploit a natural experiment based on the Italian promotion system for associate and full professor positions to investigate gender differences in the willingness to enter competition. Using data on about 42,000 professors and controlling for productivity and a number of individual and field...

We analyze how overconfidence is affected by superstitious beliefs and emotions induced by positive and negative stimuli in a field experiment involving about 700 Italian students who were randomly assigned to numbered seats in their written examination sessions. According to widespread...