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This paper studies the importance of incentives as a determinant of international trade flows. We argue that barter …
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Using experimental economics, we compare the efficiency and welfare effects of tournaments and fixed performance contracts. Our subjects (agents) were generally better off under fixed performance contracts, but the advantage of the fixed performance contract disappears if the relative magnitude...
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incentives, engage in excessively cautious behavior by foregoing surplus-increasing gas trades that could be seen ex post as … having caused supply curtailments to its customers. We derive testable implications of such behavior and show that the theory …
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