The employment relationship is characterized by incomplete contracts. Labor contracts often take the form of a fixed wage without explicit performance incentives meaning that workers have a large degree of discretion over effort levels. As a consequence, an employee’s general jobattitude...

Candidates compete to persuade a decision maker. The decision maker wishes toselect a candidate who possesses a certain ability. Then, as a signaling, each candidatedecides whether to perform a task whose performance statistically re‡ects the ability.However, since the cost of the performance...

Direct transfers allow heirs to freely use what has been passed on to them. Bequeathers who do not trust their descendants to make proper use of the fortune may prefer investing it in a safe foundation, thereby limiting their descendants’ autonomy. In our study we compare experimentally these...

We examine the strategic behavior of leaders and followers in sequential duopoly experiments in which followers either perfectly observe the leaders' actions or else observe nothing. (...)