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Optimal Effort Incentives in Dynamic Tournaments
Schmutzler, Armin; Klein, Arnd - 2015
This paper analyzes two-stage rank-order tournaments. A principal decides (i) how to spread prize money across the two periods, (ii) how to weigh performance in the two periods when awarding the second-period prize, and (iii) whether to reveal performance after the rst period. The information...
Persistent link: https://www.econbiz.de/10011301478
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The incentive effects of long-term contracts on performance - Evidence from a natural experiment in European Football
Gerfin, Michael; Feess, Eberhard; Mühlheusser, Gerd - 2010
The empirical analysis of the impact of long-term contracts on performance is challenging for two reasons: first, it is … difficult to get adequate performance measures and second, potentially negative incentive effects of long-term contracts are … countervailed by selection effects when workers with higher abilities get longer contracts. We adopt data from professional sports …
Persistent link: https://www.econbiz.de/10010270241
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To Choose or Not to Choose: Contracts, Reference Points, Reciprocity, and Signaling
Erlei, Mathias; Reinhold, Christian - 2010
Hart and Moore (2008) argue that varying degrees of flexibility in contracts induce differing reference points and …-seller-relationship with incomplete contracts and ex ante uncertainty about the sellers' cost level to test these effects. We rerun their …
Persistent link: https://www.econbiz.de/10010271433
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Use of coordination fields in food economics
Tóth, József - 2010
The coordination plays central role in the economics. The conventional economic theory looks at the market and enterprise (or hierarchy) as two different, separated manner of coordination of economic goods and services. However the modern organization theory, price theory and institutional...
Persistent link: https://www.econbiz.de/10010307588
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Contracting with Researchers
Verbeck, Matthias - 2015
We study a setting in which one or two agents conduct research on behalf of a principal. The agents binary performance level (suc- cess or failure) depends on their invested research e ort, and their choice of a research technology that is uncertain in respect of its apt- ness to generate a...
Persistent link: https://www.econbiz.de/10011301559
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Contract, Renegotiation, and Holdup: When Should Messages be Sent?
Göller, Daniel - 2015
I consider a setting of complete but unverifiable information in which two agents enter a contractual relationship to induce mutually beneficial investments. As my main result, I establish that the famous irrelevance of contracting paradigm, that arises due to the detrimental effect of...
Persistent link: https://www.econbiz.de/10011301762
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Communicating Subjective Evaluations
Lang, Matthias - 2015
Should principals explain and justify their evaluations? Suppose the principal s evaluation is private information, but she can provide justification by sending a costly unverifiable message. If she does not provide justification, her message space is restricted, but the message is costless. I...
Persistent link: https://www.econbiz.de/10011301812
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Bad Mergers Revisited: An Incentive Perspective
Kräkel, Matthias; Müller, Daniel - 2013
We consider a two-stage principal-agent model with limited liability in which a CEO is employed as agent to gather information about suitable merger targets and to manage the merged corporation in case of an acquisition. Our results show that the CEO systematically recommends targets with low...
Persistent link: https://www.econbiz.de/10010329433
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Inefficiency and Regulation in Credence Goods Markets with Altruistic Experts
Farukh, Razi; Kerkhof, Anna; Loebbing, Jonas - 2020
We study a credence goods problem - that is, a moral hazard problem with non-contractible outcome - where altruistic experts (the agents) care both about their income and the utility of consumers (the principals). Experts' preferences over income and their consumers' utility are convex, such...
Persistent link: https://www.econbiz.de/10012287878
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Do Zombies Rise When Interest Rates Fall? A Relationship-Banking Model
Kaehny, Maximilian; Herweg, Fabian - 2022
Persistent link: https://www.econbiz.de/10013359340