Adverse selection induces economic limits to market substitution. If quality uncertainty persists in both Internet and traditional marketplaces, a second-best equilibrium with parallel market segments may arise. The information cost advantage of one marketplace is exactly offset by a more severe...

The current study investigates a tripartite incentive contract between an innovator supplying an intellectual asset, a professional assigned to productive tasks, and a consulting firm specialized in recruiting qualified personnel. The liquidity-constrained professional is compensated by...

Dem von Presse, Wirtschaft und Politik vorgeworfenen Defizit bundesdeutscher Hochschulen soll mit einem verstärkten Qualitätswettbewerb um den Kunden Studenten abgeholfen werden. Student(inn)en müßten dann allerdings bei der Wahl ihrer Hochschule Kriterien in Betracht ziehen, die durch...

The current study integrates the repeated game approach to implicit contracts and the analysis of explicit bonus rules based on subjective performance evaluation to determine the optimal structure of the compensation scheme for the average white- collar employee. In contrast to previous...