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Fairness and the optimal allocation of ownership rights

Fehr, Ernst; Kremhelmer, Susanne; Schmidt, Klaus M. - 2005

We report on several experiments on the optimal allocation of ownership rights. The experiments confirm the property rights approach by showing that the ownership structure affects relationship-specific investments and that subjects attain the most efficient ownership allocation despite starting...

Persistent link: https://www.econbiz.de/10010261192

It's the media, stupid: how media activity shapes public spending

Bruns, Christian; Himmler, Oliver - 2008

Politicians seeking reelection need voters to know what they have done for them. Thus, incentives may arise to spend more money where media coverage is higher. We present a simple model to explain the allocation of public spending across jurisdictions contingent on media activity. An incumbent...

Persistent link: https://www.econbiz.de/10010264514

Tipping versus Cooperating to Supply a Public Good

Barrett, Scott; Dannenberg, Astrid - 2015

classic cooperation game. In the prisoners' dilemma, the first best outcome is attainable, but cannot be sustained as a Nash …

Persistent link: https://www.econbiz.de/10010500436

Contracts, fairness, and incentives

Fehr, Ernst; Klein, Alexander; Schmidt, Klaus M. - 2004

We show experimentally that fairness concerns may have a decisive impact on both the actual and the optimal choice of contracts in a moral hazard context. Explicit incentive contracts that are optimal according to self-interest theory become inferior when some agents value fairness. Conversely,...

Persistent link: https://www.econbiz.de/10010261212

Selling favors in the lab: experiments on campaign finance reform

Houser, Daniel; Stratmann, Thomas - 2006

provide benefits to constituencies if candidates use them to fund the distribution of useful information. On the other hand … from novel laboratory experiments designed to shed light on the campaign finance debate. Our experiment is based on a model …

Persistent link: https://www.econbiz.de/10010263918

The chopstick auction: a study of the exposure problem in multi-unit auctions

Englmaier, Florian; Guillén, Pablo; Llorente, Loreto; … - 2006

laboratory experiment. In theory, the chopstick auction has an efficient equilibrium and is revenue equivalent with the second …-price sealed-bid auction in which the exposure problem is not present. In the experiment, however, we find that the chopstick …

Persistent link: https://www.econbiz.de/10010263964

Institutions and contract enforcement

Falk, Armin; Huffman, David; MacLeod, W. Bentley - 2008

We provide evidence on how two important types of institutions - dismissal barriers, and bonus pay - affect contract enforcement behavior in a market with incomplete contracts and repeated interactions. Dismissal barriers are shown to have a strong negative impact on worker performance, and...

Persistent link: https://www.econbiz.de/10010264349

Exploring higher-order risk effects

Deck, Cary; Schlesinger, Harris - 2008

Higher-order risk effects play an important role in examining economic behavior under uncertainty. A precautionary demand for saving has been linked to the property of prudence and the property of temperance has been used to show how the presence of an unavoidable risk affects one's behavior...

Persistent link: https://www.econbiz.de/10010264510

Incentives and anonymity principle : crowding out toward users

Crifo, Patricia; Rullière, Jean-Louis - 2004

In our model, an agent produces an outcome by a costly effort and then distributes it among heterogeneous users. The agent's payoff is the weighted sum of the users? shares and the coefficient reflecting their heterogeneity. When the agent neglects users? heterogeneity the game leads to an...

Persistent link: https://www.econbiz.de/10010276426

Incentive and Signaling Effects of Bonus Payments: An Experiment in a Company

Deversi, Marvin; Spantig, Lisa - 2023

Economists and management scholars have argued that the scope of incentives to increase cooperation in organizations is … prevailing cooperation levels among employees before they can set incentives to promote cooperation. In addition, employees … matched to informed managers learn that the manager could base their incentive choice on cooperation levels. We find no …

Persistent link: https://www.econbiz.de/10014290212