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social reputation or self-respect. The presence of rewards or punishments creates doubt as to the true motive for which good …
Persistent link: https://www.econbiz.de/10005498047
opponent's preferences. Agents then have an incentive to promote their reputation as skilled bargainers through their …
Persistent link: https://www.econbiz.de/10005067665
expectations improve and the economy grows. Once there is predation, the reputation of the current government is ruined and the …
Persistent link: https://www.econbiz.de/10005667096
his reputation for truth telling, we show that the larger the inequality, the less information can credibly be transmitted …
Persistent link: https://www.econbiz.de/10005792547
This paper analyzes how private decisions and public policies are shaped by personal and societal preferences (values), material or other explicit incentives (laws) and social sanctions or rewards (norms). It first examines how honor, stigma and social norms arise from individuals’ behaviors...
Persistent link: https://www.econbiz.de/10009371470
We analyze a long-term contracting problem involving common uncertainty about a parameter capturing the productivity of the relationship, and featuring a hidden action for the agent. We develop an approach that works for any utility function when the parameter and noise are normally distributed...
Persistent link: https://www.econbiz.de/10008784751
A domestic power faces an enemy and commits terrorist atrocities to increase the likelihood of victory. A foreign patron can grant aid to the power but prefers fewer or no atrocities. The domestic power responds by acquiescing in the creation of uncontrollable paramilitaries that commit even...
Persistent link: https://www.econbiz.de/10005504744
Suppose an altruistic person - A - is willing to transfer resources to a second person - B - if B comes upon hard times. If B anticipates that A will act in this manner, B will save too little from both agents’ point of view. This is the Samaritan’s dilemma. The logic of the dilemma has been...
Persistent link: https://www.econbiz.de/10005497793
types to voters. We identify two novel implications of models in which signalling incentives are important. First, because …. Second, voters can exploit the signalling behavior of politicians by precommitting to a higher threshold for signals received …. Raising the threshold discourages signalling effort by low quality politicians but encourages effort by high quality …
Persistent link: https://www.econbiz.de/10011083735
In a market environment with random detection of product quality, a firm can employ umbrella branding as a strategy to convince consumers of the high quality of its products. Alternatively, a firm can rely on external certification of the quality of one or both of its products. We characterize...
Persistent link: https://www.econbiz.de/10005661499