A long-lived firm sells a good to a sequence of consumers, where the good’s quality imperfectly depends on the firm’s unobservable e§ort. To solve the moral hazard problem, the firm can promise to pay damages (formal sanctions) or facilitate reputational punishment (informal sanctions). Formal sanctions engender litigation costs and possible court error while informal sanctions involve ine¢cien...

in sale of goods, the delivered goods must conform both to what is the subject of contract and to what the parties intend. conformity of goods has two aspects: legal and material. the legal aspect, with which this article concerns, consist of such topics as right of sale, ownership of seller, lack of third party’s claim and so on .since domestic and international transactions are increasing, th...

This paper analyses crucial design features of unemployment insurance (UI) policies. We examine three different means of improving the efficiency of UI: the duration of benefit payments, monitoring in conjunction with sanctions, and workfare. To that end we develop a quantitative model of equilibrium unemployment. The model features worker heterogeneity in preferences for leisure. The numerical...

“Insiders” – employees within organizations – have been seen as a major problem for information security management. Employees were often found to intentionally violate organizational information security policies despite the possibility of being disciplined for their actions. In this study, we aim to examine the effects of different types of sanctions – organizational, workgroup, and personal ...

Informal sanctions are a major determinant of a society’s social capital because they are key to the enforcement of implicit agreements and social norms. Yet, little is known about the driving forces behind informal sanctions. We systematically examine the determinants of informal sanctions by a large number of experiments. Our experiments allow us to identify the relative importance of three m...

The United States has long leveraged economic sanctions as powerful instruments to achieve foreign policy objectives [1]. Economic sanctions have been described as a “cheaper form of coercion, less aggressive than war with fewer human costs, and more politically feasible” [1]. Sanctions may be implemented as tariffs on imported goods, quotas on how much can be imported or exported, embargoes th...