We investigate the entry of low-cost airlines (LCAs) in the German market. The strong competitive pressure of LCAs forced incumbent air and rail operators to reconsider their pricing strategy. Lufthansa reacted by a drastic cut of all prices for all intra-German origin and destinations (O&Ds)....

We investigate the entry of low-cost airlines (LCAs) in the German market. The strong competitive pressure of LCAs forced incumbent air and rail operators to reconsider their pricing strategy. Lufthansa reacted by a drastic cut of all prices for all intra-German origin and destinations (O&Ds)....

We investigate a team setting in which workers have different degrees of commitment to theoutcome of their work. We show that if there are complementarities in production and if theteam manager has some information about team members, interventions that the managerundertakes in order to assure...

Anonymous and unannounced site inspections known as "Mystery Shopping" (MS) are common in multi-site service firms, but little is known about the strategic importance of this practice. We conceptualize MS as a monitoring tool firms use to implement the optimal allocation of site resources...

Can right-wing terrorism increase support for far-right populist parties, and if so, why? Exploiting quasi-random variation between successful and failed attacks across German municipalities, we find that successful attacks lead to significant increases in the vote share for the right-wing,...

In the nineties, average firm size decreased, organisations decentralized, and workers preferences shifted from large to small firms. Our model identifies the economic forces behind this trend. Small firms with little capital at risk are subject to risk-shifting. They realize more of their...

In a large German bakery chain, many workers report negative perceptions of monitoring via checklists. We survey workers and managers about the value and time costs to all in-store checklists, leading the firm to randomly remove two of the most perceivedly time-consuming and low-value checklists...