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Overconfidence and moral hazard
la Rosa, Leonidas Enrique de - In: Games and Economic Behavior 73 (2011) 2, pp. 429-451
In this paper, I study the effects of overconfidence on incentive contracts in a moral-hazard framework. Agent … overconfidence can have conflicting effects on the equilibrium contract. On the one hand, an optimistic or overconfident agent …, there are efficiency gains stemming from his overconfidence. If the agent is significantly overconfident, the former effect …
Persistent link: https://www.econbiz.de/10010573644
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Efficient promotion of renewable energy with reverse auctions
Schäfer, Sebastian; Schulten, Lisa - 2015
Despite negative experiences with auctioning off subsidies for renewable energy in some countries, tenders are increasingly used today. We develop a reverse auction which accounts for particularities of intermittent renewable energy sources. Determining the quantity, demanded by the regulator,...
Persistent link: https://www.econbiz.de/10011335496
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Efficient promotion of renewable energy with reverse auctions
Schäfer, Sebastian; Schulten, Lisa - 2015
Despite negative experiences with auctioning off subsidies for renewable energy in some countries, tenders are increasingly used today. We develop a reverse auction which accounts for particularities of intermittent renewable energy sources. Determining the quantity, demanded by the regulator,...
Persistent link: https://www.econbiz.de/10011286401
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Moral Hazard in Remote Teams
Bisetti, Emilio - 2020
We re-examine the role of managers in preventing free riding when team inputs are not observable. Holmström (1982) shows that managers are necessary due to the team's lack of static incentives to implement budget-breaking group punishments. We ask whether the team can break its own budget in a...
Persistent link: https://www.econbiz.de/10012824227
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Financial constraints and moral hazard : the case of franchising
Fan, Ying; Kühn, Kai-Uwe; Lafontaine, Francine - 2013
collateralizable housing wealth in a region delays chains' entry into franchising by 0.28 years on average, 9 percent of the average …
Persistent link: https://www.econbiz.de/10010202908
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Financial constraints and moral hazard : the case of franchising
Fan, Ying; Kühn, Kai-Uwe; Lafontaine, Francine - 2016
is associated with a delay in chains' entry into franchising by 0.33 years on average, or 10 percent of the average …
Persistent link: https://www.econbiz.de/10011491589
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Financial constraints and moral hazard : the case of franchising
Fan, Ying; Kühn, Kai-Uwe; Lafontaine, Francine - 2013
Financial constraints are an important impediment to the growth of small businesses. We study theoretically and empirically how the financial constraints of agents affect their decisions to exert effort, and, hence the organizational decisions and growth of principals, in the context of...
Persistent link: https://www.econbiz.de/10010210716
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Credit Mismatch and Breakdown
Becsi, Zsolt; Li, Victor E.; Wang, Ping - Economics Department, School of Business - 2009
informational frictions with a matching process highlighted by (i) borrowers’ endogenous market entry and exit decision (entry … the form of moral hazard) with entry and search frictions. We find that the removal of entry barriers can eliminate … information-based equilibrium credit rationing. More generally, entry and incentive frictions are important in understanding the …
Persistent link: https://www.econbiz.de/10005000407
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Price competition and reputation in markets for experience goods : an experimental study
Huck, Steffen; Lünser, Gabriele K.; Tyran, Jean-Robert - 2015 - September 2013, revised March 2015
We experimentally examine the effects of price competition in markets for expe-rience goods where sellers can build up reputations for quality. We compare price competition to monopolistic markets and markets where prices are exogenously fixed (somewhere between the endogenous oligopoly and...
Persistent link: https://www.econbiz.de/10010498486
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Price competition and reputation in markets for experience goods : an experimental study
Huck, Steffen; Lünser, Gabriele K.; Tyran, Jean-Robert - 2013
We experimentally examine the effects of price competition in markets for experience goods where sellers can build up reputations for quality. We compare price competition to monopolistic markets and markets where prices are exogenously fixed (somewhere between the endogenous oligopoly and...
Persistent link: https://www.econbiz.de/10010188722