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This paper analyzes a dynamic relational contract for employees with reciprocal preferences. I develop a tractable model to investigate how “direct” performance-pay (promising a bonus in exchange for effort) and generous upfront wages (which activate the norm of reciprocity) interact over...
Persistent link: https://www.econbiz.de/10012241077
In countries where health care is publicly provided and where equity considerations play an important role in policy … well-off in society. The present paper derives socially optimal co-payments in a simple model of health care where people …
Persistent link: https://www.econbiz.de/10003297601
Although measures of sensitivity to inequality are important in judging the welfare effects of health-care programmes … overview of the literature on the measurement of inequality aversion, examines some of the features specific of the health … find evidence that individuals exhibit a preference for more equitable health distribution, but inequality aversion …
Persistent link: https://www.econbiz.de/10011966917
We link survey data containing Danish people’s perceptions of where they rank in various reference groups and fairness … positions well, but believe others are closer to themselves than they really are. The perceived fairness of inequalities is …-workers as most unfair, but underestimate inequality the most exactly within these reference groups. …
Persistent link: https://www.econbiz.de/10012485329
Persistent link: https://www.econbiz.de/10001766396
Undiscounted utilitarianism as a criterion of intergeneration justice has been questioned for different reasons: It has been argued (1) that any complete ordering of allocations with an infinite number of generations guaranteeing an optimal allocation must involve discounting, and (2) that...
Persistent link: https://www.econbiz.de/10009780201
We show experimentally that fairness concerns may have a decisive impact on both the actual and the optimal choice of … inferior when some agents value fairness. Conversely, implicit bonus contracts that are doomed to fail among purely selfish … recently developed theories of fairness, which also offer interesting new insights into the interaction of contract choices …
Persistent link: https://www.econbiz.de/10011449534
The study of optimal long-term care (LTC) social insurance is generally carried out under the utilitarian social criterion, which penalizes individuals who have a lower capacity to convert resources into well-being, such as dependent elderly individuals or prematurely dead individuals. This...
Persistent link: https://www.econbiz.de/10012024401
We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … concerned about fairness. Conversely, contracts that are doomed to fail when there are only selfish actors provide powerful … of a series of experiments. Furthermore, our results suggest that the existence of fair actors may be an important reason …
Persistent link: https://www.econbiz.de/10011398105
We present a field experiment in which we set up a call-center to study how the productivity of workers is affected if managers treat their co-workers in an unfair way. This question cannot be studied in long-lived organizations since workers may change their career expectations (and hence...
Persistent link: https://www.econbiz.de/10011757773