This paper explores how the persistence of past choices creates incentives in a continuous time stochastic game … for intertemporal incentives in a setting where traditional channels fail. Applications to persistent product quality and …

actually pay the announced bonus. This offers a new explanation for why explicit and implicit incentives are substitutes rather …

We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … incentives and become superior when there are also fair-minded players. These predictions are strongly supported by the results …

design I prove in the paper, that government - as principal - is only capable of applying "perverse" incentives towards the …

provide powerful incentives and are superior to explicit incentive contracts when there are some fair-minded players. But …, which offer important new insights into the interaction of contract choices, fairness and incentives. …

This paper analyzes the case of a principal who wants to provide an agent with proper incentives to explore a … known technology to produce fake successes. This latter option either makes the provision of incentives for honesty … ability to generate further successes. This, in turn, provides incentives for the agent to be honest before a first success. …