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Social Norms and Moral Hazard Author info | Abstract | Publisher info | Download info | Related research | Statistics Dufwenberg, Martin
Lundholm, Michael
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We examine the impact of social rewards in an unemployment insurance context. A social norm requires effort in proportion to perceived talent, but individuals cunningly choose effort so as to manipulate the perception of their talent. The model predicts that low talented individuals increase effort in response to more generous unemployment insurance. The welfare consequences of the social rewards are ambiguous. Social rewards boost effort, but for individuals with low talent more than any real economic concern can justify. Moreover, the distribution of social respect is slanted in favour of the more talented.
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Article provided by Royal Economic Society in its journal The Economic Journal .
Volume (Year): 111 (2001)
Issue (Month): 473 (July)
Pages: 506-25
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Handle: RePEc:ecj:econjl:v:111:y:2001:i:473:p:506-25Contact details of provider: Web page: http://www.res.org.uk/ More information through EDIRC
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Paper Dufwenberg, Martin & Lundholm, Michael, 1997.
"Social Norms and Moral Hazard ,"
Working Paper Series
1997:28, Uppsala University, Department of Economics.
[Downloadable!] Dufwenberg, M. & Lundholm, M., 1997.
"Social Norms and Moral Hazard ,"
Papers
1997-28, Uppsala - Working Paper Series.
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Fershtman, C. & Weiss, Y., 1996.
"Social Rewards Externalities and Stable Preferences ,"
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Journal of Public Economics ,
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Ernst Fehr, 2003.
"Psychological Foundations of Incentives ,"
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Other versions:
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IEW - Working Papers
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CEPR Discussion Papers
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IZA Discussion Papers
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CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
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European Economic Review ,
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[Downloadable!] (restricted) Charness, Gary & Dufwenberg, Martin, 2003.
"Promises & Partnership ,"
Research Papers in Economics
2003:3, Stockholm University, Department of Economics.
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Other versions: Alessandro Balestrino & Cinzia Ciardi, 2007.
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CESifo Working Paper No. , CESifo Group Munich.
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Other versions: Pierpaolo Battigalli & Martin Dufwenberg, 2005.
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Working Papers
287, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
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Pierpaolo Battigalli & Martin Dufwenberg, 2005.
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[Downloadable!] Battigalli, Pierpaolo & Dufwenberg, Martin, 2009.
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[Downloadable!] (restricted) Ernst Fehr & Urs Fischbacher, .
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[Downloadable!] Alessandro Balestrino, 2006.
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