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The Timing of Input Contributions, Deservingness, and Income Sharing Rules

Author

Listed:
  • Jichuan Zong

    (School of Finance and Laboratory of Experimental Economics, Dongbei University of Finance and Economics)

  • Te Bao

    (Division of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.)

  • Jack Knetsch

    (Department of Economics, Simon Fraser University)

  • Xiaowei Li

    (School of Economic and Social Development, Dongbei University of Finance and Economics)

Abstract

The results of an experiment involving income sharing being reported here, show that rather than being largely indifferent to the stage of implementation when an input takes effect, as implicitly assumed in nearly all economic analyses, timing appears to play an important role in determining the deservingness of reward. Among other implications, these findings appear to have direct consequences for emerging rules, and proposed alternatives, for sharing in venture capital investments.

Suggested Citation

  • Jichuan Zong & Te Bao & Jack Knetsch & Xiaowei Li, 2017. "The Timing of Input Contributions, Deservingness, and Income Sharing Rules," Economic Growth Centre Working Paper Series 1704, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    • Handle: RePEc:nan:wpaper:1704
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    File URL: https://web.hss.ntu.edu.sg/egc/wp/2017/2017-04.pdf
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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