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The Timing of Discretionary Bonuses: Effort, Signals, and Reciprocity
In: IZA Discussion Paper No. 11580
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Experiments in organizational economics
In: Research in experimental economics, volume 19
Research in Experimental Economics (REXE) Volume 19 entitled 'Experiments in Organizational Economics' highlights the importance of replicating previous economic experiments.
Norm violations and behavioral spillovers—Evidence from the lab and the field
In: European economic review: EER, Band 166, S. 104776
ISSN: 1873-572X
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Cui bono, benefit corporation? An experiment inspired by social enterprise legislation in Germany and the US
How do barely incentivized norms impact incentive-rich environments? We take social enterprise legislation as a case in point. It establishes rules on behalf of constituencies that have no institutionalized means of enforcing them. By relying primarily on managers' other-regarding concerns whilst leaving corporate incentive structures unaltered, how effective can such legislation be? This question is vital for the ongoing debate about social enterprise forms, as recently introduced in several US states and in British Columbia, Canada. We ran a laboratory experiment with a framing likened to German corporate law which traditionally includes social standards. Our results show that a stakeholder provision, as found in both Germany and the US, cannot overcome material incentives. However, even absent incentives the stakeholder norm does not foster other regarding behavior but slightly inhibits it instead. Our experiment thus illustrates the paramount importance of taking into account both incentives and framing effects when designing institutions. We tentatively discuss potential policy implications for social enterprise legislation and the stakeholder debate.
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Cui Bono, Benefit Corporation? An Experiment Inspired by Social Enterprise Legislation in Germany and the US (Preprint Version)
In: Final version published in: 11 Review of Law & Economics 2015, pp. 79-110 (doi 10.1515/rle-2014-0036)
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Symmetric vs. asymmetric punishment regimes for bribery
In major legal orders such as UK, the U.S., Germany, and France, bribers and recipients face equally severe criminal sanctions. In contrast, countries like China, Russia, and Japan treat the briber more mildly. Given these differences between symmetric and asymmetric punishment regimes for bribery, one may wonder which punishment strategy is more effective in curbing corruption. For this purpose, we designed and ran a lab experiment in Bonn (Germany) and Shanghai (China) with exactly the same design. The results show that, in both countries, with symmetric punishment recipients are less likely to grant the socially undesirable favor, while bribers are more likely to report to the authorities with asymmetric punishment. In addition, when punishment was asymmetric, corrupt offers were significantly more likely in Shanghai, but not in Bonn. Our results suggest a tradeoff between deterrence and law enforcement. In a forward-looking perspective, lawmakers must decide which aim carries more weight.
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Stationary Concepts for Experimental 2 × 2 Games: Reply
In: American economic review, Band 101, Heft 2, S. 1041-1044
ISSN: 1944-7981
This is a reply to "Stationary Concepts for Experimental 2 X 2 Games: Comment" by Brunner, Camerer, and Goeree which corrects some computational errors in Selten and Chmura (2008) and extends the comparison of five stationary concepts to data from previous experimental studies. We critically discuss their new findings and relate them to the data of Selten and Chmura (2008). We conclude that the parametric concepts of action-sampling equilibrium and payoff-sampling equilibrium perform better than quantal response equilibrium, and that the non-parametric concept of impulse-balance equilibrium performs at least as well as quantal response equilibrium. (JEL C70)
Treating Equals Unequally: Incentives in Teams, Workers' Motivation, and Production Technology
In: Journal of labor economics: JOLE, Band 28, Heft 4, S. 747-772
ISSN: 1537-5307
The Effectiveness of Incentive Schemes in the Presence of Implicit Effort Costs
In: IZA Discussion Paper No. 10546
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Do Tournaments with Superstars Encourage or Discourage Competition?
In: IZA Discussion Paper No. 10755
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Treating Equals Unequally: Incentives in Teams, Workers' Motivation and Production Technology
In: IZA Discussion Paper No. 3959
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More than the Money: Payoff-Irrelevant Terms in Relational Contracts
In: IZA Discussion Paper No. 11712
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Working paper