REFERENCE POINTS, SOCIAL NORMS, AND FAIRNESS IN CONTRACT RENEGOTIATIONS
نویسندگان
چکیده
منابع مشابه
Reference Points, Social Norms, and Fairness in Contract Renegotiations
How does an ex ante contract affect behavior in an ex post renegotiation game? We address this question in a canonical buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant and economically important impact on renegotiation behavior that goes beyond the effect of contracts on bargaining threat points. We c...
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Several recent papers argue that contracts provide reference points that affect ex post behavior. We test this hypothesis in a canonical buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant and economically important impact on renegotiation behavior that goes beyond the effect of contracts on bargaining t...
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The authors performed two experiments in which subjects were asked to make similarity judgments about social concepts, varying the direction of the comparison specified by the question. Asymmetries in rated similarity were used to diagnose concepts that function as habitual reference points. In Experiment 1 subjects rated a friend as more similar to themselves than vice versa along both social ...
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We show experimentally that fairness concerns may have a decisive impact on the actual and optimal choice of contracts in a moral hazard context. Bonus contracts that offer a voluntary and unenforceable bonus for satisfactory performance provide powerful incentives and are superior to explicit incentive contracts when there are some fair-minded players. But trust contracts that pay a generous w...
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ژورنال
عنوان ژورنال: Journal of the European Economic Association
سال: 2014
ISSN: 1542-4766
DOI: 10.1111/jeea.12109