This paper analyzes a principal-agent procurement problem in which the principal is unaware of events affecting the agent's marginal costs. Since she does not conceive of all relevant events, her planned menu of contracts may be suboptimal. Communication arises naturally as some types of the...

We propose a model that combines statistical discrimination and educational sorting that explains why blacks get more education than do whites of similar cognitive ability. Our model explains the difference between blacks and whites in the relations between education and AFQT and between wages...

This paper describes a simple model of labor disputes based on the hypothesis that unions use strikes to infer the level of profitability of the firm. The implications of the model are then tested using data on wage outcomes, strike probabilities, and strike durations for a large sample of...

This paper reviews the concept of entrepreneurial actions arising from the opportunities using signalling theory as the building blocks to discuss the process from perception, recognition to enactment. By adopting a dynamic approach to study how entrepreneurs see opportunities, particularly the...

A principal faces an agent with frame-dependent preferences and designs an extensive-form decision problem with a frame at each stage. This allows the principal to induce dynamic inconsistency and thereby circumvent incentive compatibility constraints. We show that a vector of contracts can be...

This paper evaluates the challenges facing developing countries when there is uncertainty about the policy maker type. We consider a country characterized by volatile output, inelastic demand for fiscal outlays, high tax collection costs, and sovereign risk, where future output depends on the...

This study proposes a production framework in which capital, labor, and corporate social responsibility (CSR) generate sales. Estimating a stochastic frontier on an international sample of large manufacturing firms reveals that CSR has asymmetric effects on efficiency. In a matched sample, the...

If profit maximizing firms have limited information about the general productivity of new workers, they may choose to use easily observable characteristics such as years of education to 'statistically discriminate' among workers. The pure credential value of education will depend on how quickly...

Emotion is one of the main characteristics of a human being that make them different from other living beings. 90% of the communication is based totally upon vocals and these vocals show different emotions. It was found that human has 27 different types of emotions and six of them are major like...