perform well voluntarily. Principals who trust induce, on average, a higher performance and hence earn higher payoffs than … principals who control. The reason is that most agents lower their performance as a response to the signal of distrust created by …We show experimentally that a principal?s distrust in the voluntary performance of an agent has a negative impact on …

performance appraisal systems, monitoring by supervisors, autonomy to organize the work) and individuals' inclination to trust … explore the relation between certain measures of control in employment relationships (i.e. working time regulations, use of … others. Trust is measured by the general trust question like in most other economic studies based on surveys. We find that …

implement a control strategy, which consists of low effort discretion and little or no rent-sharing, or they implement a trust … control strategy prevails, while the possibility of screening renders the trust strategy profitable. The introduction of … but also leaving more opportunities for shirking. These high-performance work systems are difficult to understand in terms …

performance appraisal systems, monitoring by supervisors, autonomy to organize the work) and individuals’ inclination to trust … explore the relation between certain measures of control in employment relationships (i.e. working time regulations, use of … others. Trust is measured by the general trust question like in most other economic studies based on surveys. We find that …

perform well voluntarily. Principals who trust induce, on average, a higher performance and hence earn higher payoffs than … principals who control. The reason is that most agents lower their performance as a response to the signal of distrust created by …We show experimentally that a principal’s distrust in the voluntary performance of an agent has a negative impact on …

implement a control strategy, which consists of low effort discretion and little or no rent-sharing, or they implement a trust … control strategy prevails, while the possibility of screening renders the trust strategy profitable. The introduction of … but also leaving more opportunities for shirking. These "high-performance work systems" are difficult to understand in …

paramount concern. We assess the introduction of group-based performance pay in a modern industrial production setting using … difference-in-difference estimation. Performance increased by 19 percent, with three quarters coming from increased performance … little evidence of freeriding; quantile regressions show increased performance throughout the distribution of workers …

more effective when contracts are unverifiable because they help market participants overcome problems of trust. On the …

commitment: full, limited, and no commitment. We propose a test that distinguishes between all three types based on how … contemporaneous and historical news affect household behavior. Our test permits heterogeneity in the degree of commitment across … households. Using recent data from the Panel Study of Income Dynamics, we reject full and no commitment, while we find strong …

productivity shocks, wage rigidity, and two-sided lack of commitment. Due to the non-Coasean nature of labor contracts, inefficient …