This paper considers the eff ects of a two-period interaction on the decision of a principal to delegate authority to a potentially biased but better informed agent. Compared to the (repeated) one-period case, the agent's first period actions may also signal his type which in turn impacts wages...

This paper investigates the use of reputation in an economy where principals hire agents for two different kinds of tasks, in which the agents have differing aptitudes. Principal-agent matches are remade every period, but a principal can acquire some information on the past behavior of her...

This paper considers the effects of a two-period interaction on the decision of a principal to delegate authority to a potentially biased but better informed agent. Compared to the (repeated) one-period case, the agent's first period actions may also signal his type which in turn impacts wages...

This paper studies how persistence can be used to create incentives in a continuous-time stochastic game in which a long-run player interacts with a sequence of short-run players. Observation of the long-run player's actions are distorted by a Brownian motion and the actions of both players...

Many theoretical results rely on delayed review of imperfect information for sustaining cooperative outcomes. This paper uses a laboratory experiment designed around a repeated prisoner's dilemma with imperfect monitoring to study what effect delay has on cooperation in practice. Information was...

This paper experimentally examines the selection of equilibria in dynamic games. Our baseline treatment is a two-state extension of an indefinitely repeated prisoner's dilemma, which we modify in series of treatments to study the focality of efficiency and symmetry, the effect dynamic and static...

Real life applications of yardstick regulation frequently refer to historical cost data. While yardstick regulation cuts the link between firms' own costs and prices firms may charge in a static setting, it does not do so in a dynamic setting where historical cost data is used. A firm can...