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Fairness, incentives and contractual incompleteness

Fehr, Ernst; Klein, Alexander; Schmidt, Klaus M. - 2001 - This version: February 2001

We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral hazard context. Incentive contracts that are optimal when there are only selfish actors become inferior when some agents are concerned about fairness. Conversely, contracts that...

Persistent link: https://www.econbiz.de/10010440969

Contracts, fairness, and incentives

Fehr, Ernst; Klein, Alexander; Schmidt, Klaus M. - 2004 - This version: March 31, 2004

contracts in a moral hazard context. Explicit incentive contracts that are optimal according to self-interest theory become …

Persistent link: https://www.econbiz.de/10010440446

Fairness and incentives in a multi-task principal-agent model

Fehr, Ernst; Schmidt, Klaus M. - 2004 - This version: April 30, 2004

-interest theory but is consistent with theories of fairness. …

Persistent link: https://www.econbiz.de/10010440447

Earnings inequality and the global division of labor : evidence from the executive labor market

Schymik, Jan - 2017

Many industrialized economies have seen a rapid rise in top income inequality and in the globalization of production since the 1980s. In this paper I propose an open economy model of executive pay to study how offshoring affects the pay level and incentives of top earners. The model introduces a...

Persistent link: https://www.econbiz.de/10011657028

The role of equality and equity in social preferences

Fehr, Ernst; Naef, Michael; Schmidt, Klaus M. - 2005

Engelmann and Strobel (AER 2004) question the relevance of inequity aversion in simple dictator game experiments claiming that a combination of a preference for efficiency and a Rawlsian motive for helping the least well-off is more important than inequity aversion. We show that these results...

Persistent link: https://www.econbiz.de/10010440438

The economics of fairness, reciprocity and altruism : experimental evidence and new theories ; chapter written for the Handbook of reciprocity, gift-giving and altruism

Fehr, Ernst; Schmidt, Klaus M. - 2005 - This version: June 6, 2005

This paper surveys recent experimental and field evidence on the impact of concerns for fairness, reciprocity and altruism on economic decision making. It also reviews some new theoretical attempts to model the observed behavior.

Persistent link: https://www.econbiz.de/10010440439

Import competition and the composition of firm investments

Fromenteau, Philippe; Schymik, Jan; Tscheke, Jan - 2016

We study how foreign competition affects the composition of investments inside firms. A parsimonious model predicts that firms have an incentive to shift their investments towards more short-term assets when exposed to tougher competition. Using data on expenditures of listed US companies into...

Persistent link: https://www.econbiz.de/10011547850

Penalized splines, mixed models and the Wiener-Kolmogorov filter

Bloechl, Andreas - 2014

Penalized splines are widespread tools for the estimation of trend and cycle, since they allow a data driven estimation of the penalization parameter by the incorporation into a linear mixed model. Based on the equivalence of penalized splines and the Hodrick-Prescott filter, this paper connects...

Persistent link: https://www.econbiz.de/10010439160

Theories of fairness and reciprocity : evidence and economic applications

Fehr, Ernst; Schmidt, Klaus M. - 2001 - This version: December 23, 2000

Most economic models are based on the self-interest hypothesis that assumes that all people are exclusively motivated by their material self-interest. In recent years experimental economists have gathered overwhelming evidence that systematically refutes the self-interest hypothesis and suggests...

Persistent link: https://www.econbiz.de/10010440965

Trade in tasks and the organization of firms

Marin, Dalia; Schymik, Jan; Tarasov, Alexander - 2014

We incorporate trade in tasks à la Grossman and Rossi-Hansberg (2008) into a small open economy version of the theory … competitiveness of the offshoring firms. We show further that the offshoring of managerial tasks relaxes the constraint on managers … are 33.4% more decentralized than non-offshoring firms. We find further that the average fraction of managers offshored …

Persistent link: https://www.econbiz.de/10010438301