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Risk Taking as Self Discipline in Contractual Relationships
Shin, Dongsoo; Starbird, S. Andrew - 2009
-telling incentive to herself, which, in turn, lowers the cost of inducing the agent to accept the contract …
Persistent link: https://www.econbiz.de/10014200218
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Optimal contracts with a risk-taking agent
Barron, Daniel; Georgiadis, George; Swinkels, Jeroen M. - In: Theoretical economics : TE ; an open access journal in … 15 (2020) 2, pp. 715-761
optimally offers a contract that makes the agent's utility concave in output. If the agent is risk-neutral and protected by … concavity constraint might bind for some outputs but not others. We characterize the unique profit-maximizing contract and show …
Persistent link: https://www.econbiz.de/10012308620
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Incentive contracts when agents distort probabilities
Gonzalez Jimenez, Victor H. - In: Quantitative economics : QE ; journal of the … 15 (2024) 3, pp. 607-653
I show that stochastic contracts generate powerful incentives when agents suffer from probability distortion. When implementing these contracts, the principal can target probability distortions in order to inflate the agent's perceived benefits of exerting high levels of effort. This novel...
Persistent link: https://www.econbiz.de/10015053193
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Optimal risk taking in an uneven tournament game with risk averse players
Kräkel, Matthias - 2007
We analyze the optimal choice of risk in a two-stage tournament game between two players that have different concave utility functions. At the first stage, both players simultaneously choose risk. At the second stage, both observe overall risk and simultaneously decide on effort or investment....
Persistent link: https://www.econbiz.de/10010343932
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Gambling in Risk-Taking Contests : Experimental Evidence
Embrey, Matthew - 2020
This paper investigates whether contest schemes induce excessive risk-taking by implementing in the laboratory a novel … stopping task based on the contest model of Seel and Strack (2013). In this stylized setting, managers who face contest payoffs … seen even without contest incentives. Further analysis suggests that many subjects display behaviour consistent with some …
Persistent link: https://www.econbiz.de/10012826390
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Risk Preference Heterogeneity in Group Contests
Brookins, Philip; Paan Jindapon - 2021
We analyze the first model of a group contest with players that are heterogeneous in their risk preferences. In our …
Persistent link: https://www.econbiz.de/10013248594
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Aversion to the variability of pay and the structure of executive compensation contracts
Chaigneau, Pierre - In: Journal of business economics and management 16 (2015) 4, pp. 712-732
Persistent link: https://www.econbiz.de/10011383053
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Gambling in contests with heterogeneous loss constraints
Seel, Christian - In: Economics letters 136 (2015), pp. 154-157
Persistent link: https://www.econbiz.de/10011436041
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Is risk taking beneficial to the insured and to society?
Mao, Hong; Carson, James M.; Ostaszewski, Krzysztof M. - In: The journal of insurance issues : official journal of … 41 (2018) 2, pp. 215-230
Persistent link: https://www.econbiz.de/10011958457
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A comparison of milestone-based and buyout options contracts for coordinating R&D partnerships
Bhattacharya, Shantanu; Gaba, Vibha; Hasija, Sameer - In: Management science : journal of the Institute for … 61 (2015) 5, pp. 963-978
Persistent link: https://www.econbiz.de/10011284889