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Civic capital and the size distribution of plants: Short-run dynamics and long-run equilibrium

Burker, Mathias; Minerva, G. Alfredo - 2012

We characterize how the size distribution of plants, within narrowly defined industries, changed in Italy over a ten-year time span, and relate this to the stock of civic capital at the provincial level. Data on plant size come from the 1991 and 2001 Italian censuses. Civic capital turns out to...

Persistent link: https://www.econbiz.de/10010282078

A Model of Loyalty and Competence

Wagner, Alexander F. - Institut für Schweizerisches Bankwesen <Zürich> - 2006

An agent shows loyalty to his manager by bearing personal costs to the superiors benefit. In return, the manager may offer various forms of rewards. If this exchange is not contractible, typically repeated interaction will be required to sustain it. Beyond loyalty, the manager is interested in...

Persistent link: https://www.econbiz.de/10005858369

Efficient Communication in Organizations

Vaccari, Federico - 2022

Organizations design their communication structures to improve decision-making while limiting wasteful influence activities. An efficient communication protocol grants complete information payoffs to all organization members, thereby overcoming asymmetric information problems at no cost. This...

Persistent link: https://www.econbiz.de/10013470530

The role of verifiability and privacy in the strategic provision of performance feedback: Theory and experimental evidence

Ertaç, Seda; Koçkesen, Levent; Özdemir, Duygu - 2015

We theoretically and experimentally analyze the role of verifiability and privacy in strategic performance feedback using a 'one principal-two agent' context with real effort. We confirm the theoretical prediction that information transmission occurs only in verifiable feedbackmechanisms and...

Persistent link: https://www.econbiz.de/10011440134

Optimal delegation of sequential decisions: The role of communication and reputation

Atakan, Alp; Koçkesen, Levent; Kubilay, Elif - 2017

We analyze delegation of a set of decisions over time by an informed principal to a potentially biased agent. Each period the principal observes a state of the world and sends a 'cheap-talk' message to the agent, who is privately informed about her bias. We focus on principal-optimal equilibria...

Persistent link: https://www.econbiz.de/10011696314

Strategic feedback in teams: Theory and experimental evidence

Ertaç, Seda; Gümren, Mert; Koçkesen, Levent - 2017

FeedbackWe theoretically and experimentally analyze public and private feedback in teams that are characterized by different performance technologies. We consider a setting where the principal can provide truthful information on agents' performances or strategically withhold feedback. We find...

Persistent link: https://www.econbiz.de/10012060196

Starting small to communicate

Atakan, Alp; Koçkesen, Levent; Kubilay, Elif - 2018

We analyze a repeated cheap-talk game in which the receiver is privately informed about the conflict of interest between herself and the sender and either the sender or the receiver controls the stakes involved in their relationship. We focus on payoff-dominant equilibria that satisfy a...

Persistent link: https://www.econbiz.de/10012060207

Default and interest rate shocks: Renegotiation matters

Almeida, Victor; Esquivel, Carlos; Kehoe, Timothy Jerome; … - 2024

We develop a sovereign default model with debt renegotiation in which interest-rate shocks affect default incentives … the 1982 Mexican default, which followed a large increase in US interest rates. Our novel renegotiation mechanism is key …

Persistent link: https://www.econbiz.de/10014480460

How do informal agreements and renegotiation shape contractual reference points?

Fehr, Ernst; Hart, Oliver; Zehnder, Christian - 2011

such as informal agreements and expost renegotiation. We investigate the relevance of these features experimentally. Our … the presence of informal agreements and ex post renegotiation. However, our data also reveal new behavioral features that … renegotiation changes how trading parties evaluate ex post outcomes. Interestingly, the availability of these additional options …

Persistent link: https://www.econbiz.de/10010316871

Reference points in renegotiations: The role of contracts and competition

Bartling, Björn; Schmidt, Klaus M. - 2012

hypothesis in a canonical buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an … initial contract has a highly significant and economically important impact on renegotiation behavior that goes beyond the …

Persistent link: https://www.econbiz.de/10010316921