We consider a gtenure-clock problemh in which a principal may set a deadline by which she needs to evaluate an agent's ability and decides whether to promote him or not. We embed this problem in a continuous-time model with both hidden action and hidden information, where the principal must...

While political correctness is a dominant norm in many public situations, we also observe behaviors that are apparently ''politically incorrect,'' often from professionals and experts. This paper examines the flip side of political correctness as analyzed in Morris (2001) to shed some light on...

Auctions are a popular and prevalent form of trading mechanism, despite the restriction that the seller cannot price-discriminate among potential buyers. To understand why this is the case, we consider an auction-like environment in which a seller with an indivisible object negotiates with two...

A modified version of Spence’s signaling model is analyzed to explore the relationships among the type composition, career concerns, and signal effort levels chosen by agents. We show that an increase in the proportion of high-type agents does not change an agent’s effort levels...

Comparing 341 public companies that did not implement employee stock bonus policies with 317 that did during the period from 1989 to 2006, the study identifies that the factors significantly influencing decisions on the percentage of after-tax surplus profits to be distributed as employee stock...

Comparing 341 public companies that did not implement employee stock bonus policies with 317 that did during the period from 1989 to 2006, the study identifies that the factors significantly influencing decisions on the percentage of after-tax surplus profits to be distributed as employee stock...

A group of individuals, with a potential conflict of interest, face a choice among alternatives. There is a network externality such that the chosen alternative yields value only if sufficiently many individuals get on board. Their preferences for each alternative and the benefit derived from a...

A buyer suggests prices to N sellers in a time period and buys from the seller who accepts the bid first. The number of bidding rounds is determined by how frequently the buyer can make an offer. We show that with no limit on the frequency and without discounting, the price path is either kept...