This article addresses the issue of peer monitoring and choice of contracts on the repayment behaviour of the subjects. The authors conducted a laboratory experiment using student subjects from the University of Sydney, Australia by employing profit sharing (PS) and conventional interest based...

This study examines the relationship between incentive contracts for managers and the allocation of efforts by the managers as well as the stock market’s role in monitoring allocation of the efforts. It also evaluates solvency regulation in Japan and its effects on the compensation of a manager...

Abstract The ownership and governance of for-profit (FP), nonprofit (NP), and local government (LG) organizations are different. Therefore, the objectives of these different types of organizations and their performance may differ. We conjecture that in markets where there is substantial...

Abstract This study presents a model of optimal contracting for health services in the presence of excess demand and waiting times. We assume that: i) hospitals differ in their demand for treatment; ii) potential demand is private information of the provider; iii) specialists can dump patients;...

We study policy advice by several experts with noisy private information and biased preferences. We highlight a trade-off between the truthfulness of the information revealed by each expert and the number of signals from different experts that can be aggregated to reduce noise. Contrary to...

I study affiliated, pure common-value auctions with ex-ante asymmetric buyers. For the two-buyer case I characterize and prove uniqueness of the equilibrium of hybrid auctions where the payment is a weighted average of the highest and second-highest bids. A recursive method to explicitly compute...

This paper examines incentives for information disclosure in a oligopolistic market when buyers are unsure of the existence of that information. Previous empirical and theoretical work has shown that mandatory disclosure laws can be binding when buyers do not know whether the information exists....

This paper focuses on the signalling role of debt maturity. The main novelty of the paper is that it analyzes a setting in which high quality firms use collateral as a complementary device along with debt maturity to signal their superiority. Model simulations suggest a non-monotonic...

In the presence of scarce shelf space, retail grocers face the proliferation of new products and high failure rates. Accurately predicting the demand for a new product becomes increasingly difficult for retailers as the number of product offerings increases. This study explores slotting...

Summary We investigate wage-hours contracts within a four-period rent sharing model that incorporates asymmetric information. Distinctions are made among (a) an investment period, (b) a period in which the parties may separate (quits or layoffs) or continue rent accumulation and sharing, (c) a...