We relax the common assumption of homogeneous beliefs in principal-agent relationships with adverse selection. In an evolutionary learning set-up, which is imitative, principals can have different beliefs about the distribution of agents' types in the population. The resulting nonlinear dynamic...

We show that under multitasking - where tasks can be substitutes or complements - a specialist worker with an uneven skill distribution can outperform a generalist with higher average skills. We use a principal-agent model to study worker efficiency and welfare. The main result is robust if a...

In the theory of public enforcement of law the choice of the liability rules is between strict liability and fault-based liability. In this paper, we study the determinants of compliance when in addition to standard economic incentives wrongdoers take into account stigmatization costs. In this...