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experts make the predicted promise; (2) proper promises induce consumer-friendly behavior; and (3) higher interaction prices …
Persistent link: https://www.econbiz.de/10013146471
We experimentally examine the impact of tax evasion attempts on the performance of credence goods markets, where contractual incompleteness results from asymmetric information on the welfare maximizing quality of the good. Our results suggest that tax evasion attempts – independently of...
Persistent link: https://www.econbiz.de/10013021526
In this paper, we investigate individuals' investment in status in an environment where no monetary return can possibly be derived from reaching a better relative position. We use a real-effort experiment in which we permit individuals to learn and potentially improve their status (rank). We...
Persistent link: https://www.econbiz.de/10013141233
We investigate the influence of two widespread compensation schemes, individual piece-rates and team incentives, on … pronounced under team incentives than under individual piece-rates, which highlights a so far fairly neglected feature of these …
Persistent link: https://www.econbiz.de/10013120402
relational incentives are a powerful causal determinant for the existence and performance of credit markets. In fact, in the … incentives and exacerbates another moral hazard problem in credit markets ヨ the choice of inefficient high-risk projects …
Persistent link: https://www.econbiz.de/10013157034
comparison group in China, we examine how both psychological and financial incentives, together with attitudes toward risk, may … rank-based financial incentives. Our results show that performance-ranking information had a significant motivational … effect on average performance for students, but not for that of workers. Adding financial incentives based on rank provided …
Persistent link: https://www.econbiz.de/10013009501
Agents' decisions to exert effort depends on the provided incentives as well as the potential costs for doing so. So …
Persistent link: https://www.econbiz.de/10012962308
work individually without monetary incentives and are then assigned to teams of two where compensation is based on team …% higher first stage effort than random matching. In line with the theory the latter result is more pronounced when the task … explicit monetary incentives in the first stage …
Persistent link: https://www.econbiz.de/10012978121
We study a dynamic variant of the die-under-the-cup task where players can repeatedly misreport the outcomes of consecutive die rolls to earn more money, either under a non- competitive piece rate scheme or in a two-player competitive tournament. In this dynamic setting we test (i) whether...
Persistent link: https://www.econbiz.de/10013251543
Many information structures generate correlated rather than mutually independent signals, the news media being a prime example. This paper shows experimentally that in such contexts many people neglect these correlations in the updating process and treat correlated information as independent. In...
Persistent link: https://www.econbiz.de/10013082140