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Repeated moral hazard and contracts with memory: A laboratory experiment

  • Nieken, Petra
  • Schmitz, Patrick W.

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 can benefit from offering long-term contracts that exhibit memory.

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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 75 (2012)
Issue (Month): 2 ()
Pages: 1000-1008

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Handle: RePEc:eee:gamebe:v:75:y:2012:i:2:p:1000-1008
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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