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In three experiments, we examine how an employer reputation system disciplines an online labor market (Amazon … value of the employer reputation system for workers, employers, and the market. Specifically, in an experiment that varies … reputation, we find that having a good reputation allows employers at twice the rate as bad-reputation employers with no loss in …
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Most insurance companies publish few data on the occurrence and detection of insurance fraud. This stands in contrast to the previous literature on costly state verification, which has shown that it is optimal to commit to an auditing strategy, as the credible announcement of thoroughly auditing...
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In this paper, we focus on the determination of the optimal fine set by a regulator when a firm can litigate to avoid paying the fine and the monitoring agency has discretionary power to negotiate with the firm the size of the fine. The regulator needs to balance the positive effect of the fines...
Persistent link: https://www.econbiz.de/10014117744
theory. Our unified reputation framework theoretically allows for either the good or the bad reputation prediction to emerge …We experimentally test whether the possibility of building a reputation impacts behavior in the manner suggested by …. Our design additionally varies whether reputation building is possible or not by making the past choices of the long run …
Persistent link: https://www.econbiz.de/10012733116
This paper examines the ability of a policy maker to control equilibrium outcomes in a global coordination game; applications include currency attacks, bank runs, and debt crises. A unique equilibrium is known to survive when the policy is exogenously fixed. We show that, by conveying...
Persistent link: https://www.econbiz.de/10003779286
Global games of regime change – coordination games of incomplete information in which a status quo is abandoned once a sufficiently large fraction of agents attacks it – have been used to study crises phenomena such as currency attacks, bank runs, debt crises, and political change. We extend...
Persistent link: https://www.econbiz.de/10008665284
In economics, the standard approach to language is that talk is cheap. Here, instead, language is a social convention that affects utility. Unless language is used in its ordinary sense, it cannot help to coordinate actions because there is no way of decoding it. This points to a unique...
Persistent link: https://www.econbiz.de/10008903436