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We study internal incentives, transparency and firm performance in multidivisional organizations. Two independent … principal-agent contract with and without performance transparency. Then, we show how effort spillovers affect the equilibrium …
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Using a new experimental design, we compare how subjects form beliefs in an investor-client setup under varying degrees of liability. Our results reflect the importance of social preferences when making investment decisions for others. We show that when investors have no liability, those with...
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