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"The authors compare the two merger control systems currently employed worldwide: a mandatory system based on merger size threshold and a voluntary system with ex-post monitoring and fines. The voluntary system possesses two informational advantages: (i) the enforcement agency employs more...
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We analyze a repeated principal-agent setting in which the principal cares about the agent's verifiable effort as well as an extra profit that can be generated only if the agent is talented. The agent is overconfident about his talent and updates beliefs using Bayes' rule. An exploitation...
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reinforcement learning. …
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that increase the incentives of relatively more able workers, heterogeneity is unlikely to be as detrimental as commonly … perceived for incentives in organizations with multiple hierarchy levels. Heterogeneity of the workforce may even be optimal …This paper shows that the incentive effects of heterogeneity may be positive rather than negative in dynamic contests …
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to recursively solve the dynamic incentive problem by applying supervised and reinforcement machine learning. Third, to …
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