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|
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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, 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.
- 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.
- Gary Charness & Matthew Rabin, 2003. "Understanding Social Preferences with Simple Tests," General Economics and Teaching 0303002, EconWPA.
- 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.
- De Marco, Giuseppe & Immordino, Giovanni, 2013.
"Partnership, reciprocity and team design,"
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- Pedro Rey Biel, 2004.
"Inequity aversion and team incentives,"
- Pedro Rey-Biel, 2007. "Inequity Aversion and Team Incentives," Working Papers 319, Barcelona Graduate School of Economics.
- Pedro Rey-Biel, 2007. "Inequity Version and Team Incentives," UFAE and IAE Working Papers 677.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Dominique Demougin & Claude Fluet, 2003.
"Group vs. Individual Performance Pay When Workers Are Envious,"
CIRANO Working Papers
- Dominique Demougin & Claude Fluet, 2003. "Group vs. Individual Performance Pay When Workers Are Envious," Cahiers de recherche 0318, CIRPEE.
- Florian Englmaier & Stephen G. Leider, 2008.
"Contractual and Organizational Structurewith Reciprocal Agents,"
CESifo Working Paper Series
2415, CESifo Group Munich.
- 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.
- Englmaier, Florian & Leider, Stephen, 2012. "Contractual and organizational structure with reciprocal agents," Munich Reprints in Economics 22010, University of Munich, Department 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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