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This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a setting with moral hazard and risk-averse agents, who have private information on their productivity. Two vertically differentiated firms compete for agents by offering contracts...
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screening by mode of trade. By selling to high types while renting to low types, the monopolist overcomes the obstacles …
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colleagues get more income net of production costs. Screening workers with equal productivity but different fairness concerns is …
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