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paper focuses on the incentives of private parties to make these offers to begin with. We consider a model where sole …
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tradeoff between risk and incentives. Subjects in our experiments choose their compensation for performing a real-effort task … rate contracts in the presence of output risk, and provide novel insights that reference dependent preferences affect the … from a menu of linear piece rate and fixed payment combinations. As classical principal-agent models predict, more risk …
Persistent link: https://www.econbiz.de/10012698074
tradeoff between risk and incentives. Subjects in our experiments choose their compensation for performing a real-effort task … rate contracts in the presence of output risk, and provide novel insights that reference dependent preferences affect the … from a menu of linear piece rate and fixed payment combinations. As classical principal-agent models predict, more risk …
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Several empirical findings have challenged the traditional trade-off between risk and incentives. By combining risk … risk and incentives can be explained. …
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