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Repeated moral hazard and contracts with memory: A laboratory experiment

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  • Nieken, Petra
  • Schmitz, Patrick W

Abstract

This 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 may prefer to offer contracts with memory.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8241.

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Date of creation: Feb 2011
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Handle: RePEc:cpr:ceprdp:8241

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Keywords: Laboratory experiment; Repeated moral hazard; Sequential hidden actions;

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References

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Cited by:
  1. Filippin, A. & Crosetto, P., 2014. "A reconsideration of gender differences in risk attitudes," Working Papers, Grenoble Applied Economics Laboratory (GAEL) 2014-01, Grenoble Applied Economics Laboratory (GAEL).
  2. Schmitz, Patrick W., 2013. "Job design with conflicting tasks reconsidered," European Economic Review, Elsevier, vol. 57(C), pages 108-117.

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