The instability of Cournot cartels can be overcome by a collective wage agreement if this agreement stipulates minimum fixed wages and piece rates that are legally enforceable. This new view on the institution of collective wage agreements is not only relevant for strategic management, it also...

Compared to budget-balanced Sharing contracts, Anti-Sharing may improve the efficiency of teams. The Anti-Sharer collects a fixed payment from all team members; he receives the actual output and pays out its value to them. If a team members becomes Anti-Sharer, he will be unproductive in...

In this paper we experimentally test a theory of boundedly rational behavior in a "lemons" market. We analyze two different market designs, for which perfect rationality implies complete and partial market collapse, respectively. Our empirical observations deviate substantially from the...

In this paper, we analyze the impact of Bad Debt Loss Insurance on settlement outcomes. A huge success in a settlement or trial can turn into a disaster when the defendant goes bankrupt before paying the plaintiff’s claim. “Rainmakers” face the following dilemma: the greater the success,...

The paper compares the Nash bargaining solution of a simple settlement game (with perfect and complete information and imperfect decision making judges) to the equilibrium results of a trial game without settlement stage. The comparison allows for an evaluation of the efficiency of settlement...

Macht ist ein zentraler Bestandteil sozialer Interaktion. Obgleich eine Vielzahl gebräuchlicher Anschauungen und Begriffsdefinitionen zum Thema Macht existiert, erfordert ein wissenschaftlicher Umgang mit dem Konzept der Macht deren quantitative Operationalisierung. Der vorliegende Beitrag...

If the production of a risk-neutral monopolist is in uenced by a random variable, then the expected prot is decreasing in the variance of the production process.

When appointing a representative in negotiations, the principal can o er his agent a offer contract that promises a percentage of the bargaining result, and a bonus payment result (or penalty) if bargaining fails. Conventional wisdom of contract theory seems to suggest that the share should be...

After Porsche SE took over Volkswagen AG, its supervisory board consists of three groups: The Porsche shareholders hold 6 seats, while the 324,000 Volkswagen employees and the 12,000 Porsche employees will be represented by 3 delegates each. This paper perceives each of these three groups as...