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to explain this phenomenon. One theory claims that individuals hold different preferences in their consumer role than in … accepted theory assumes that individuals' most favored preference is to free ride whenever possible. Thus, a Prisoner's Dilemma … and other explanations, as well as their normative implications, and proposes an alternative theory. It rejects the claim …
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Consider a principal-agent relationship in which more effort by the agent raises the likelihood of success. Does rewarding success, i.e., paying a bonus, increase effort in this case? I find that bonuses have not only an incentive but also an income effect. Overall, bonuses paid for success may...
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In this report, we combine theory and empirical estimates for how labor earnings respond to changes in tax rates and …
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