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In this paper, we introduce the psychological concept of anxiety into the standard linear agency model. After replacing … the agent's risk premium with anxiety, we show that the agent's optimal effort can conform to the inverted-U hypothesis …, which states that an increase in anxiety improves performance when anxiety is low, but reduces it when anxiety is high. It …
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The motivation crowding effect suggests that an external intervention via monetary incentives or punishments may undermine (and under different indentifiable conditions strengthen) intrinsic motivation. As of today, the theoretical \lang1033 possibility of crowding effects is widely accepted...
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Indicators of "trust", "confidence", "optimism" or "sentiment" among consumers and/or investors, are published continuously in the mass media. More importantly, these indices seem not only to reflect how the state of the real economy is perceived by private agents, but can also help predict the...
Persistent link: https://www.econbiz.de/10001662296
Indicators of trust, confidence, optimism or sentiment among consumers and/or investors, are published continuously in the mass media. More importantly, these indices seem not only to reflect how the state of the real economy is perceived by private agents, but can also help predict the future...
Persistent link: https://www.econbiz.de/10010509339
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