Many problems in cyber trust exist at least partially because the people and institutions involved are not properly motivated to solve them. The incentives are often perverse, misaligned, or missing. By improving economic, social, and personal incentives, cyber trust can be significantly improved. The incentive-based approach is based on modern enterprise risk management methods and experiences...

Random incentive mechanisms are an important tool of experimental economics. According to such mechanisms subjects are asked to choose from a variety of problems, but are paid according to only one randomly drawn problem. I show that subjects’ choices in random incentive mechanisms and single choice experiments are identical if they view the randomization device that determines the choice probl...

Abstract This article aims to provide theoretical model for analyzing challenge of asymmetric information in the third sector of economy (which is the most important challenge, preventing the growth and development of third sector), using the theoretical foundation of contract theory and incentive theory with regard to the special characteristics of third sector derived by its special structur...

Humans are “smart components” in a system, but cannot be directly programmed to perform; rather, their autonomy must be respected as a design constraint and incentives provided to induce desired behavior. Sometimes these incentives are properly aligned, and the humans don’t represent a vulnerability. But often, a misalignment of incentives causes a weakness in the system that can be exploited b...

Substantial progress has been made to strengthen health information systems, with most efforts focusing on digitization, improving data quality and analysis, and identifying problems. But the ultimate goal is using information to solve problems, which requires building an information use culture over time. How? Humancentered design, role modeling by senior managers in use of data, and incentive...

Diffuse pollution is one type of generated by agricultural, livestock, and urban runoff that responsible for surface groundwater pollution. As a result, the exposed population develops different diseases affect their short, medium, long-term quality life. Researchers need to be able assess loss life in monetary terms include this social impact decision-making processes. Specifically, if no meas...

This paper provides a brief summary of the theory and the reality of economic-incentive approaches to environmental regulation. The paper begins with a derivation of the necessary and sufficient condition for a policy instrument to be cost effective, namely that the instrument induces all sources to abate emissions at the same marginal cost. Subsequent sections introduce economic-incentive poli...

Allocation and exchange of many discrete resources – such as kidneys or school seats – is conducted via direct mechanisms without monetary transfers. A primary concern in designing such mechanisms is the coordinated strategic behavior of market participants and its impact on resulting allocations. To assess the impact of this implementation constraint, we construct the full class of group domin...

We propose an incentive scheme based on intervention to sustain cooperation among selfinterested users. In the proposed scheme, an intervention device collects imperfect signals about the actions of the users for a test period, and then chooses the level of intervention that degrades the performance of the network for the remaining time period. We analyze the problems of designing an optimal in...

Using a broad sample of the largest European companies, I examine whether the two governance mechanisms, namely (i) independent monitoring by a board of directors and (ii) grants and disclosures of incentive-based executive pay, are substitutes for one another. I find that companies with proportionately more executives on their boards of directors grant greater incentive-based pay to their exec...