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Riordan and Sappington (JET, 1988) show that in an agency relationship in which the agent's type is correlated with a public ex post signal, the principal may attain first best (full surplus extraction and efficient output levels) if the agent is faced with a lottery such that each type is...
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Punishment institutions for curtailing free-riding in social dilemmas rely on information about individuals’ behavior … cooperation and efficiency in a social dilemma change in response to varying how monitoring and punishment are jointly organized …. decentralized) and three punishment regimes (self- vs. peer- vs. del-egated punishment) in a repeated public goods game. As …
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Research examining the effect of weak punishment on conformity indicates that punishment can backfire and lead to … of social norms and their interplay with weak punishment in the context of a trust game. Across six conditions, we … systematically vary the combination of existence of weak punishment and norm information. Norm information may refer either to what …
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brought in the government in the first place (Selection Principle). As national solvency regulation creates a positive … international policy externality on foreign lenders of domestic banks, there will be an undersupply of such regulation. This may …
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The problem of designing tournament contracts under limited liability and alternative performance measures is considered. Under risk neutrality, only the best performing agent receives an extra premium if the liability constraint becomes binding. Under risk aversion, more than one prize is...
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