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This paper studies the impact of incentives on worker self-selection in a controlled laboratory experiment. In a first …
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the agent's motivation to perform well. Before the agent chooses his performance, the principal in our experiment decides … opportunistically. We find that most principals in our experiment do not restrict the agent's choice set but trust that the agent will …
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Do employers and workers underbid prevailing wages if there is unemployment? Do employers take advantage of workers' underbidding by lowering wages? We hypothesize that under conditions of incomplete labor contracts, wage levels may positively affect workers' propensity to cooperate. This, in...
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