Does gender play a role in the context of team work? Our results based on areal-effort experiment suggest that performance depends on the composition of theteam. We find that female and male performance di¤er most in mixed teams withrevenue sharing between the team members, as men put in...

We study the effects of envy on the feasibility of relational contracts in a standard moral hazard setup with two agents. Performance is evaluated via an observable, but non-contractible signal which reflects the agent's individual contribution to form value. Both agents exhibit disadvantageous...

With adverse selection, diseconomies of scale associated with hierarchies may induce the implementation of a second-best technology. This occurs whenever rents to lower tiers of the hierarchy increase faster than total surplus. This is more likely with longer hierarchies.

The paper provides a tractable, analytical framework to study regulatory risk underoptimal incentive regulation. Regulatory risk is captured by uncertainty about thepolicy variables in the regulator’s objective function: weights attached to profits andcosts of public funds. Results are as...

Strategic delegation to an independent regulator with a pure consumer standard improves dynamic regulation by mitigating ratchet effects associated with short term contracting. A consumer standard alleviates the regulator's myopic temptation to raise output after learning the firm is...

Does gender play a role in the context of team work? Our results based on a real-effort experiment suggest that performance depends on the composition of the team. We find that female and male performance differ most in mixed teams with revenue sharing between the team members, as men put in...

A popular view of limited liability in financial contracting is that it is the result of societal preferences agnainst excessive penalties. the view of most financial economists is instead that limited liability emerged as an optimal institution when, in the absence of a clear limit on economic...

In this paper, I offer a theoretical explanation of the robust gender differences in educational achievement distributions of school children. I consider a shot cheap talk game with two different types of senders (biased teachers and fair teachers), two types of receivers (normal and special...

With adverse selection, diseconomies of scale associated with hierarchies may induce the implementation of a second-best technology. This occurs whenever rents to lower tiers of the hierarchy increase faster than total surplus. This is more likely with longer hierarchies.

In an information cascade experiment participants are confronted with artificial predecessors predicting in line with the BHW model (Bikchandani et al. 1992). Using the BDM (Becker et al., 1964) mechanism we study participants' probability perceptions based on maximum prices for participating in...