Repeated moral hazard and contracts with memory: A laboratory experiment
AbstractThis paper reports data from a laboratory experiment on two-period moral hazard problems. The findings corroborate the contract-theoretic insight that even though the periods are technologically unrelated, due to incentive considerations principals can benefit from offering long-term contracts that exhibit memory.
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Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 75 (2012)
Issue (Month): 2 ()
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Web page: http://www.elsevier.com/locate/inca/622836
Repeated moral hazard; Sequential hidden actions; Laboratory experiment;
Other versions of this item:
- Nieken, Petra & Schmitz, Patrick W, 2011. "Repeated moral hazard and contracts with memory: A laboratory experiment," CEPR Discussion Papers 8241, C.E.P.R. Discussion Papers.
- Nieken, Petra & Schmitz, Patrick W., 2012. "Repeated moral hazard and contracts with memory: A laboratory experiment," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 372, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
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