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We study the attitudes of junior and senior employees towards strategic uncertainty and competition, by means of a …
Persistent link: https://www.econbiz.de/10013104678
We study the attitudes of junior and senior employees towards strategic uncertainty and competition, by means of a …
Persistent link: https://www.econbiz.de/10013105828
Persistent link: https://www.econbiz.de/10010428820
show credit increases competition) shift labor demand towards women. These divergent industrial responses in net reduce the …
Persistent link: https://www.econbiz.de/10012845450
that enhanced product-market competition between banks eroded worker rents. In contrast to theories predicting that … increased competition will lower the racial wage gap, we find that deregulation increased the wage gap between black and white … explained by increased product market competition, changes in technology, or enhanced market power …
Persistent link: https://www.econbiz.de/10013403901
Why do good bankers at times respond unanimously with the same disastrous strategy? Rooted in regulatory economics and behavioural finance, the paper offers a taxonomy of effects that narrow banks decision scope into funnel-shaped and thus prepared the ground for the financial crisis. The basic...
Persistent link: https://www.econbiz.de/10013130408
This paper uses a series of experiments with commercial bank loan officers to test the effect of performance incentives on risk-assessment and lending decisions. We first show that, while high-powered incentives lead to greater screening effort and more profitable lending, their power is muted...
Persistent link: https://www.econbiz.de/10013104111
There is an apparent rift between the way banks calculate and the way humans think.On the one hand, exponential discounting has played a centuries-long, lead role in financial analysis. On the other hand, experiments by behavioral economists demonstrate that hyperbolic discounting is better than...
Persistent link: https://www.econbiz.de/10012834166
We conduct an experiment with commercial bank loan officers to test how performance compensation affects risk-assessment and lending. High-powered incentives lead to greater screening effort and more profitable lending decisions. This effect is, however, muted by deferred compensation and...
Persistent link: https://www.econbiz.de/10013055942