We attempt to formulate and explain two types of self-fulfilling prophecy, called the Pygmalion effect (if a supervisor thinks her subordinates will succeed, they are more likely to succeed) and the Galatea effect (if a person thinks he will succeed, he is more likely to succeed). To this...

This study develops a dynamic model of information projection and explores how it affects timing of actions. An action is observable and available only after the agents' arrival. The value of an action is unknown; however, each agent receives a noisy signal on its value. Without information...

We investigate a multi-agent moral-hazard model where agents have expectation-based reference-dependent preferences a la Koszegi and Rabin (2006, 2007). We show that even when each agent's probability of success in a project is independent, team incentives can be optimal. Because the agents are...