The Virtue of Being Underestimated: A Note on Discriminatory Contracts in Hidden Information Models
AbstractA standard hidden information model is considered to study the influence of the a priori productivity distribution on the optimal contract. A priori more productive (hazard rate dominant) agents work less, enjoy lower rents, but generate a higher expected surplus.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 342.
Length: 19 pages
Date of creation: Aug 2001
Date of revision:
Publication status: published in: Economics Letters, 2002, 75 (2), 171-178
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Schnedler, Wendelin, 2002. "The virtue of being underestimated: a note on discriminatory contracts in hidden information models," Economics Letters, Elsevier, vol. 75(2), pages 171-178, April.
- Wendelin Schnedler, 2001. "The Virtue of Being Underestimated: A Note on Discriminatory Contracts in Hidden Information Models," Bonn Econ Discussion Papers bgse18_2001, University of Bonn, Germany.
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-09-26 (All new papers)
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.:
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, June.
- Wendelin Schnedler, 2011.
"You Don't Always Get What You Pay For: Bonuses, Perceived Income and Effort,"
German Economic Review,
Verein für Socialpolitik, vol. 12(1), pages 1-10, 02.
- Wendelin Schnedler, 2009. "You Don't Always Get What You Pay For: Bonuses, Perceived Income, and Effort," The Centre for Market and Public Organisation 09/226, Department of Economics, University of Bristol, UK.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.