Showing 1 - 10 of 522
We develop a dynamic model in which a group collectively bargains with an external party. At each date the group makes an offer to the external party (the 'agent') in exchange for a concession. Group members hold heterogeneous preferences over agreements and are uncertain about the agent's...
Persistent link: https://www.econbiz.de/10014444047
There is substantial evidence that generalized trust improves economic outcomes at both the individual and aggregate levels. Furthermore, certain institutions such as educational and religious institutions foster trust, trade, and economic growth. A specific mechanism through which trust might...
Persistent link: https://www.econbiz.de/10014146384
We investigate a common-value labor setting in which firms interview a worker prior to hiring. When firms have private information about the worker’s value and interview decisions are kept private, many firms may enter the market, interview, and hire with positive probability. When firms’...
Persistent link: https://www.econbiz.de/10011685150
Standard models of moral hazard predict a negative relationship between risk and incentives, but the empirical work has not confirmed this prediction. In this paper, we propose a model with adverse selection followed by moral hazard, where effort and the degree of risk aversion are private...
Persistent link: https://www.econbiz.de/10013075605
We analyze the expected value of information about an agent's type in the presence of moral hazard and adverse selection. Information about the agent's type enables the principal to sort/screen agents of different types. The value of the information decreases in the variability of output and the...
Persistent link: https://www.econbiz.de/10012860920
We analyze the expected value of information about an agent's type in the presence of moral hazard and adverse selection. Information about the agent's type enables the principal to sort/screen agents of different types. The value of the information decreases in the variability of output and the...
Persistent link: https://www.econbiz.de/10012841554
Optimally reallocating human capital to tasks is key for an organization to successfully navigate a transition. We study how to design employment contracts to allocate employees to different valuable projects within an organization given two simultaneous challenges: The employees have private...
Persistent link: https://www.econbiz.de/10011980048
A basic tenet of incentive theory states that there is a trade-off between risk and incentives. By implication, greater variation in firm profits leads to a reduction in the use of profit sharing. Surprisingly, there is little empirical evidence for this relationship. This paper reexamines the...
Persistent link: https://www.econbiz.de/10014088114
We develop a model in which large risk-neutral firms and individual risk-averse consumers compete to employ heterogeneous workers by posting compensation menus. Production takes time, and we analyze how screening motives interact with the desire to smooth consumption. There is a unique symmetric...
Persistent link: https://www.econbiz.de/10015110615
We develop a model in which large risk-neutral firms and individual risk-averse consumers compete to employ heterogeneous workers by posting compensation menus. Production takes time, and we analyze how screening motives interact with the desire to smooth consumption. There is a unique symmetric...
Persistent link: https://www.econbiz.de/10015125404