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Rules of Thumb in Life-Cycle Saving Decisions

Winter, Joachim K.; Schlafmann, Kathrin; Rodepeter, Ralf - 2011

We analyse life-cycle saving decisions when households use simple heuristics, or rules of thumb, rather than solve the underlying intertemporal optimization problem. We simulate life-cycle saving decisions using three simple rules and compute utility losses relative to the solution of the...

Persistent link: https://www.econbiz.de/10010427609

Emission Trading Systems and the Optimal Technology Mix

Zöttl, Gregor - 2011

allocation of permits which is based on past output or past emissions can lead to inefficient production decisions of firms …)). Current cap and trade systems grant free allocations based on installed production facilities, which lead to a distortion of … mechanism on firms’ investment and production decisions and to analyze the optimal design of emission trading systems in such an …

Persistent link: https://www.econbiz.de/10010427613

Monitoring and Pay: An Experiment on Employee Performance under Endogenous Supervision

Dittrich, Dennis A. V.; Kocher, Martin G. - 2011

We present an experimental test of a shirking model where monitoring intensity is endogenous and effort a continuous variable. Wage level, monitoring intensity and consequently the desired enforceable effort level are jointly determined by the maximization problem of the firm. As a result,...

Persistent link: https://www.econbiz.de/10010427614

On the Positive Effects of Overcon fident Self-Perception in Teams

Ludwig, Sandra; Wichardt, Philip C.; Wickhorst, Hanke - 2011

In this paper, we study the individual payoff effects of overconfident self-perception in teams. In particular, we demonstrate that the welfare of an overconfident agent in a team of one rational and one overconfident agent or a team of two overconfident agents can be higher than that of the...

Persistent link: https://www.econbiz.de/10010427615

The Influence of Altruistic Preferences on the Race to the Bottom of Welfare States

Hendel, Ulrich - 2012

Common tax competition models suggest that welfare states will undercut each other's tax rate to attract taxpayers and keep welfare recipients at bay. This will lead to a zero-taxation outcome in the absence of migration costs or other barriers to migration. This paper develops a two-country...

Persistent link: https://www.econbiz.de/10010427616

Standards and Incentives under Moral Hazard with Limited Liability

Reinshagen, Felix - 2012

We consider a model of moral hazard with limited liability of the agent and effort that is two-dimensional. One dimension of the agent’s effort is observable and the other is not. The principal can thusmake the contract conditional not only on outcome but also on observable effort. The...

Persistent link: https://www.econbiz.de/10010427619

Can Naked Exclusion Be Procompetitive?

Gratz, Linda; Reisinger, Markus - 2012

Antitrust scholars have argued that exclusive contracts have anticompetitive, or at best neutral effects, if no efficiencies are generated. In contrast, this paper shows that exclusive contracts can have procompetitive effects, provided buyers are imperfect downstream competitors and contract...

Persistent link: https://www.econbiz.de/10010427620

Unexpected Consequences of Ricardian Expectations

Schlicht, Ekkehart - 2013

Economists are widely familiar with the Ricardian equivalence thesis. It maintains that, given the time-path of government spending, a change in taxation does not alter the set of feasible life-time consumption plans of the households and affects neither the demand for commodities and services...

Persistent link: https://www.econbiz.de/10010427622

"Look like the innocent flower, but be the serpent under't": Mimicking behaviour of growth-oriented terrorist organizations

Hendel, Ulrich - 2012

This paper examines the interaction between a growth-oriented terrorist organization and an uninformed government based on a two-period signaling game. The terrorists, taking into account the government's counter-terrorism response to first period attacks, gain additional manpower from...

Persistent link: https://www.econbiz.de/10010427627

The Theory of the Firm goes Global

Marin, Dalia - 2012

What insights can be gained from bringing the theory of the firm to the global economy? I discuss several new features … of the world economy that can be explained by incorporating the theory of the firm into the theory of international trade …

Persistent link: https://www.econbiz.de/10010427628