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We introduce intention-based social preferences into a mechanism design framework with independent private values and quasilinear payoffs. For the case where the designer has no information about the intensity of social preferences, we provide conditions under which mechanisms which have been...
Persistent link: https://www.econbiz.de/10010354632
information on reciprocity types, implementability of an incentive-compatible social choice function is guaranteed if it satises … an additional insurance property. By contrast, precise information on reciprocity types may imply that all ecient social … agents have private information about their material payo types and their reciprocity types. We also provide a systematic …
Persistent link: https://www.econbiz.de/10011444226
We consider rules (strategies, commitments, contracts, or computer programs) that make behavior contingent on an …
Persistent link: https://www.econbiz.de/10010437999
games increases over time. -- Cooperation ; experiment ; contracts ; indenture ; reciprocity …
Persistent link: https://www.econbiz.de/10003793109
We experimentally test the efficacy of indenture as a self-enforced contract device. In an indenture game, the principal signals the intention of payment-on-delivery, by tearing a banknote and giving the agent half of it as "prepayment"; the agent receives the completing half after delivering...
Persistent link: https://www.econbiz.de/10014206562
We develop a model of manager-employee relationships where employees care more for their manager when they are more convinced that their manager cares for them. Managers can signal their altruistic feelings towards their employees in two ways: by offering a generous wage and by giving attention....
Persistent link: https://www.econbiz.de/10011377053
Share contracts are common in principal-agent relationships when returns are uncertain and it is costly to measure the …, contingency fees for attorneys, and cropshare contracts used in agriculture. An empirical feature of these contracts is that the … differences among the contracting parties. Using extensive survey data on cropshare contracts in Illinois, I test the hypothesis …
Persistent link: https://www.econbiz.de/10011281653
In a principal-agent setup, we investigate agents disclosure of conflict of interests revealing deliberate or undeliberate kindness and its affect on principals reciprocal behavior. To this end, we firstly introduce a theoretical model refering to Hart and Moore (2008) which captures aspects of...
Persistent link: https://www.econbiz.de/10010484364
We revisit the question of why fixed rent contracts are less prevalent than crop share contracts despite Marshallian …
Persistent link: https://www.econbiz.de/10011582250
Before embarking on a project, a principal must often rely on an agent to learn about its profitability. We model this learning as a two-armed bandit problem and highlight the interaction between learning (experimentation) and production. We derive the optimal contract for both experimentation...
Persistent link: https://www.econbiz.de/10011926023