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~person:"Kräkel, Matthias"
~person:"List, John A."
~source:"repec"
~subject:"choosing higher-powered incentives"
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choosing higher-powered incentives
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risk-incentive relationship Abstract: Several empirical findings have challenged the traditional view on the trade-off between risk and incentives. By combining risk aversion and limited liability in a standard principal-agent model the empiri- cal puzzle on the positive relationship between risk and incentives can be explained. Increasing risk leads to a less informative performance signal. Under limited liability
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Kräkel, Matthias
List, John A.
Budde, Jörg
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University of Bonn, Germany
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Limited Liability and the Risk-Incentive Relationship
Budde, Jörg
;
Kräkel, Matthias
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University of Bonn, Germany
-
2008
Persistent link: https://www.econbiz.de/10005032228
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