This paper shows that a principal's distrust in the voluntary performanceof an agent has a negative impact on the agent's motivation to perform well.

We show experimentally that a principal?s distrust in the voluntary performance of an agent has a negative impact on the agent?s motivation to perform well. Before the agent chooses his performance, the principal in our experiment decides whether he wants to restrict the agents? choice set by...

Recent studies report that productivity increases under tournament reward structures than under piece rate reward structures. We conduct maze-solving experiments under both reward structures and reveal that overconfidence is a significant factor in increasing productivity. Specifically, subjects...

Questions remain as to whether results from experimental economics games are generalizable to real decisions in non-laboratory settings. Furthermore, important questions persist about whether social capital can help solve seemingly missing credit markets. I conduct two experiments, a Trust game...

While the public good experiment has been used to analyze cooperation among various groups in Western Europe and North America, it has not been extensively used in other contexts such as Turkey. This project seeks to rectify that and explore how Turkish university students informally self...

Experiments can be used not only to test theory but also to measure preferences and assess heterogeneity of behavior. I discuss the design of experimental measures of ahruism and trust, as well as their uses in assessing how behavior varies across individuals, and across partners that a given...

In this paper we introduce a trust game and we test whether 'trust' begets ‘trustworthiness’. We designed a trust game with unknown number of rounds to the player, which created cooperation and efficiency in the trust game. We compared the results of this investment game with the previous...

Trust has been identified as a significant role-playing factor, which guards supply chains against high inventories and poor customer services. Previous research addressed trust in supply chain mostly with the aid of surveys, interviews and field data analysis. Using an extended version of the...

Consider a supply chain in which products move through multiple serial echelons before they are finally shipped to the end customer. In such a serial multi-echelon inventory system, inventory managers make dynamic decisions, called inventory replenishment decisions, to regulate inventory levels,...