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Saint-Paul, Gilles - 2002

This paper analyses the welfare effects of price restrictions on private contracting in a world where agents have a limited cognitive ability. People compute the costs and benefits of entering a transaction with an error. The government knows the distribution of true costs and benefits as well...

Persistent link: https://www.econbiz.de/10010262616

It Hurts to Ask

Benabou, Roland; Jaroszewicz, Ania; Loewenstein, George - 2022

information between a person in need of help and a potential help-giver. Asking entails the risk of rejection, which can be …

Persistent link: https://www.econbiz.de/10013426425

Dynamic incentive contracts under parameter uncertainty

Prat, Julien; Jovanovic, Boyan - 2010

We analyze a long-term contracting problem involving common uncertainty about a parameter capturing the productivity of the relationship, and featuring a hidden action for the agent. We develop an approach that works for any utility function when the parameter and noise are normally distributed...

Persistent link: https://www.econbiz.de/10010278382

Dynamic Incentive Contracts under Parameter Uncertainty

Prat, Julien; Jovanovic, Boyan - Institute for the Study of Labor (IZA) - 2010

Persistent link: https://www.econbiz.de/10008727782

An Economic Analysis of Exclusion Restrictions for Instrumental Variable Estimation

Berg, Gerard J. van den - Institute for the Study of Labor (IZA) - 2007

Instrumental variable estimation requires untestable exclusion restrictions. With policy effects on individual outcomes, there is typically a time interval between the moment the agent realizes that he may be exposed to the policy and the actual exposure or the announcement of the actual...

Persistent link: https://www.econbiz.de/10005763520

Cognitive Ability and Paternalism

Saint-Paul, Gilles - Institute for the Study of Labor (IZA) - 2002

Persistent link: https://www.econbiz.de/10005761789

Contracting with Private Information

Hagedorn, Marcus - 2003

This paper adds to the current literature on incomplete contracting that argues that deviating from a complete information, transaction-cost free environment may be may generate valuable insights. We achieve this by assuming bargaining with asymmetric information. We consider the consequences of...

Persistent link: https://www.econbiz.de/10010262108

Cross-sectional earnings risk and occupational sorting: the role of risk attitudes

Bonin, Holger; Dohmen, Thomas; Falk, Armin; Huffman, David - 2006

This paper investigates whether risk preferences explain how individuals are sorted into occupations with different … willingness to take risks whose behavioral relevance has been validated in previous work. As a measure of earnings risk, we use … relating earnings risk to the measure of individual risk preference, our evidence shows that individuals with low willingness …

Persistent link: https://www.econbiz.de/10010267608

Incentive effects on risk attitude in small probability prospects

Lefèbvre, Mathieu; Vieider, Ferdinand M.; Villeval, … - 2009

predicted by the prospect theory. But under high stakes, we provide some evidence that risk seeking behavior is dramatically …Most studies on the role of incentives on risk attitude report data obtained from within-subject experimental … paper reports instead between-subject results on the effect of monetary stakes on risk attitudes for small probability …

Persistent link: https://www.econbiz.de/10010277023

Robust estimation of wage dispersion with censored data: An application to occupational earnings risk and risk attitudes

Pollmann, Daniel; Dohmen, Thomas; Palm, Franz C. - 2012

-coded administrative wage data from the German IAB Employment Sample (IABS). We then relate these robust measures of earnings risk to the … risk attitudes of individuals working in these occupations. We find that willingness to take risk is positively correlated …

Persistent link: https://www.econbiz.de/10010282144