Artificially intelligent (AI) applications make data-driven predictions that enable personalization on a large scale. As such, recent advances in AI's predictive power might have the potential to create more productive work environments. Using a principal-agent model and understanding AI as...

The escalation of commitment process involves a decision-maker continuing commitment to an investment after receiving negative information. This study develops a principal-agent model to explore how escalation decisions are linked with departures of CEOs from the position. With asymmetric...

This paper studies career concerns in groups where workers can allocate effort between their own tasks and other group members' tasks. We first theoretically investigate how workers allocate effort when they have career concerns. Then, we study their decisions when the labor market can only...

What can employers learn from personality tests when job applicants have incentives to misrepresent themselves? Using a within-subject, laboratory experiment, we compare personality measures with and without incentives for misrepresentation. Incentivized personality measures are weakly to...

Several empirical studies have challenged tournament theory by pointing out that (1) there is considerable pay variation within hierarchy levels, (2) promotion premiums only in part explain hierarchical wage differences and (3) external recruitment is observable on nearly any hierarchy level. We...

How should a coalition of cooperating players allocate payoffs to its members? This question arises in a broad range of situations and evokes an equally broad range of issues. For example, it raises technical issues in accounting, if the players are divisions of a corporation, but involves...

Based on the simple model of the deposit the methodology of finding the optimal solution for bilateral monopoly (BM) of lignite mine and power plant is shown taking into account pit optimisation. It is proposed to treat lignite price negotiation as a kind of game. In the first stage...

Con ayuda de la teoría de la agencia, este artículo analiza los efectos del secuestro político como estrategia de largo plazo en la estructura organizativa de las Fuerzas Armadas Revolucionarias de Colombia, y de la larga duración de los secuestros impuesta por la decisión del gobierno de...

How do price commitments impact the amount of information firms acquire about potential customers? We examine this question in the context of a competitive market where firms search for information that may disqualify applicants. Contracts are incomplete because the amount of information...

We model situations in which a principal offers contracts to a group of agents to participate in a project. Agents' benefits from participation depend on the identity of other participating agents. We assume heterogeneous externalities and characterize the optimal contracting scheme. We show...