Numerous laboratory experiments show that workers reciprocate to high wages with high effort, when there is perfect information on the surplus created. Recent field experiments, however, suggest that trust and reciprocity may be lower or absent when the information is incomplete. We report a...

This thesis contributes to the research on other regarding preferences by experimental studies. Chapter 1 investigates the feasibility of efficiency gains in a principal-agent relationship by voluntary leadership. Chapter 2 investigates whether negative reciprocity can be documented if the worse...

Overconfidence is a well-established behavioral phenomenon that involves an overestimation of own capabilities. We introduce a model, in which managers and agents exert effort in a joint production, after the manager decides on the allocation of the tasks. A rational manager tends to delegate...