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We experimentally investigate a repeated "inspection game" where, in the stage game, an employee can either work or shirk and an employer simultaneously chooses to inspect or not inspect. Combined payoffs are maximized when the employee works and the employer does not inspect. However, the...
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We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … incentives and become superior when there are also fair-minded players. These predictions are strongly supported by the results …
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