I study how the persistence of past choices can be used to create incentives in a continuous time stochastic game in which a large player, such as a firm, interacts with a sequence of short-run players, such as customers. The long-run player faces moral hazard and her past actions are...

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...

Prior work has demonstrated that prosocial incentives – where individuals' effort benefits a charitable organization – can be more effective than standard incentives, particularly when the stakes are low. Yet, little is known about the effectiveness of prosocial incentives on people's...

Companies and policymakers are increasingly relying on economic incentives as a means of promoting new habits and changing people’s behavior. For example, workplace wellness programs use incentives to encourage a healthier lifestyle and municipalities offer financial incentives to fund...

Prior work has demonstrated that prosocial incentives - where individuals' effort benefits a charitable organization - can be more effective than standard incentives, particularly when the stakes are low. Yet, little is known about the effectiveness of prosocial incentives on people's decisions...