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Can exit prizes induce lame ducks to shirk less? Experimental evidence

  • Leif Helland

    (BI Norwegian Business School)

  • Jon Hovi

    (University of Oslo and CICERO)

  • Lars Monkerud

    (BI Norwegian Business School)

Elected representatives serving their final period face only weak incentives to provide costly effort. However, overlapping generations (OLG) models suggest that exit prizes sustained by trigger strategies can induce representatives in their final period to provide such effort. We evaluate this hypothesis using a simple OLG public good experiment, the central treatment being whether exit prizes are permitted. We find that a significantly higher number of subjects in their final period contribute when exit prizes are permitted. However, this result does not originate from use of trigger strategies. More likely explanations include gift-exchange and focal-point effects.

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Article provided by Europa Grande in its journal European Journal of Government and Economics.

Volume (Year): 1 (2012)
Issue (Month): 2 (December)
Pages: 106-125

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Handle: RePEc:egr:ejge00:v:1:i:2:p:106-125
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  7. Lim, Suk S & Prescott, Edward C & Sunder, Shyam, 1994. "Stationary Solution to the Overlapping Generations Model of Fiat Money: Experimental Evidence," Empirical Economics, Springer, vol. 19(2), pages 255-77.
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  9. Lott, John R, Jr, 1990. "Attendance Rates, Political Shirking, and the Effect of Post-Elective Office Employment," Economic Inquiry, Western Economic Association International, vol. 28(1), pages 133-50, January.
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