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Explicit and implicit incentives and opportunities for mutually beneficial voluntary cooperation co-exist in many … crowding out of voluntary cooperation even after incentives have been abolished. This crowding out occurs also in repeated …-effort relationships. Our systematic analysis also replicates established results on gift exchange, incentives, and crowding out of …
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constitutes a rational response to a time allocation problem, their reaction to incentives appears myopic in other dimensions. …
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We study the effects of envy on the feasibility of relational contracts in a standard moral hazard setup with two agents. Performance is evaluated via an observable, but non-contractible signal which reflects the agent's individual contribution to firm value. Both agents exhibit disadvantageous...
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