In an information cascade experiment participants are confronted with artificial predecessors predicting in line with the BHW model (Bikchandani et al.,1992). Using the BDM (Becker et al., 1964) mechanism we study participants'probability perceptions based on maximum prices for participating in...

We study the effects of envy on the feasibility of relational contracts in a standard moral hazard setup with two agents. Performance is evaluated via an observable, but non-contractible signal which reflects the agent's individual contribution to form value. Both agents exhibit disadvantageous...