Ahrens, Steffen; Bitter, Lea; Bosch-Rosa, Ciril - 2020
In this paper we study the effects that loss contracts - prepayments that can be clawbacked later - have on group … coordination when there is strategic uncertainty. We compare the choices made by experimental subjects in a minimum effort game. In … an isomorphic loss contract. Our results show that loss contracts reduce the minimum efforts of groups and worsen …