Reciprocity in the Principal Multiple Agent Model
This paper studies how incentives are affected by intention-based reciprocity preferences when the principal hires many agents. Our results describe the agents' psychological attitudes required to sustain a given strategy profile. We also show that hiring reciprocal agents to implement a first or a second-best contract will always benefit the principal if the strategy profile is symmetric. When instead the profile (first or second-best) is asymmetric the principal's best interest might be better served by self-interested agents. We conclude the paper by clarifying when symmetric profiles are most likely to arise.
|Date of creation:||10 May 2012|
|Date of revision:|
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- Gary Charness & Matthew Rabin, 2002.
"Understanding Social Preferences With Simple Tests,"
The Quarterly Journal of Economics,
MIT Press, vol. 117(3), pages 817-869, August.
- Charness, Gary & Rabin, Matthew, 2001. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series qt4qz9k8vg, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Charness, Gary & Rabin, Matthew, 2002. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series qt3d04q5sm, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Gary Charness & Matthew Rabin, 2003. "Understanding Social Preferences with Simple Tests," General Economics and Teaching 0303002, EconWPA.
- Charness, Gary B & Rabin, Matthew, 2001. "Understanding Social Preferences With Simple Tests," University of California at Santa Barbara, Economics Working Paper Series qt0dc3k4m5, Department of Economics, UC Santa Barbara.
- Giuseppe De Marco & Giovanni Immordino, 2010.
"Partnership, Reciprocity and Team Design,"
CSEF Working Papers
257, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 24 Mar 2011.
- Florian Englmaier & Stephen Leider, 2012.
"Contractual and Organizational Structure with Reciprocal Agents,"
American Economic Journal: Microeconomics,
American Economic Association, vol. 4(2), pages 146-83, May.
- Florian Englmaier & Stephen G. Leider, 2008. "Contractual and Organizational Structurewith Reciprocal Agents," CESifo Working Paper Series 2415, CESifo Group Munich.
- Dominique Demougin & Claude Fluet, 2003.
"Group vs. Individual Performance Pay When Workers Are Envious,"
Cahiers de recherche
- Dominique Demougin & Claude Fluet, 2003. "Group vs. Individual Performance Pay When Workers Are Envious," CIRANO Working Papers 2003s-10, CIRANO.
- Pedro Rey-Biel, 2007.
"Inequity Aversion and Team Incentives,"
319, Barcelona Graduate School of Economics.
- Netzer, Nick & Schmutzler, Armin, 2010.
"Rotten Kids with Bad Intentions,"
CEPR Discussion Papers
7667, C.E.P.R. Discussion Papers.
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