Showing 1 - 10 of 389
We provide experimental evidence that contractual incompleteness, ie, the absence of third party enforcement of workers’ effort or the quality of the good traded causes a fundamental change in the nature of market interactions. If contracts are complete the vast majority of trades are...
Persistent link: https://www.econbiz.de/10005661770
Repeated interactions provide a prominent but paradoxical hypothesis for human cooperation in one-shot interactions. Intergroup competitions provide a different hypothesis that is intuitively appealing but heterodox. We show that neither mechanism reliably supports the evolution of cooperation...
Persistent link: https://www.econbiz.de/10013465492
We report on several experiments on the optimal allocation of ownership rights. The experiments confirm the property rights approach by showing that the ownership structure affects relationship-specific investments and that subjects attain the most efficient ownership allocation despite starting...
Persistent link: https://www.econbiz.de/10005765975
-interest theory but is consistent with theories of fairness. …
Persistent link: https://www.econbiz.de/10005114195
We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … concerned with fairness. Conversely, contracts that are doomed to fail when there are only selfish actors provide powerful …
Persistent link: https://www.econbiz.de/10005792499
systematically refutes the self-interest hypothesis and suggests that many people are strongly motivated by concerns for fairness and … insights into the nature of preferences and into the relative performance of competing theories of fairness. The purpose of …
Persistent link: https://www.econbiz.de/10005656392
We show experimentally that fairness concerns may have a decisive impact on the actual and optimal choice of contracts … trust contracts that pay a generous wage upfront are less efficient than incentive contracts. The principals understand this … and predominantly choose the bonus contracts. Our results are consistent with recently developed theories of fairness …
Persistent link: https://www.econbiz.de/10010371080
We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … concerned about fairness. Conversely, contracts that are doomed to fail when there are only selfish actors provide powerful …
Persistent link: https://www.econbiz.de/10011398105
In this paper we reply to Binmore and Shaked's criticism of the Fehr-Schmidt model of inequity aversion. We put the theory and their arguments into perspective and show that their criticism is not substantiated. Finally, we briefly comment on the main challenges for future research on social...
Persistent link: https://www.econbiz.de/10003848846
. Strong reciprocity means that people willingly repay gifts and punish the violation of cooperation and fairness norms even in …
Persistent link: https://www.econbiz.de/10011514175