principal-agent settings is greatly reduced when the agent’s effort is distorted by random shocks and transmitted imperfectly to … the principal. Specifically, we find that gift exchange contracts without shocks encourage effort and wages well above … standard predictions. However, the introduction of random shocks reduces wages and effort, regardless of whether the shocks can …

find that, although overall giving is similar in both countries when subjects know the actual role of luck and effort …

find that, although overall giving is similar in both countries when subjects know the actual role of luck and effort …

important primitives of social capital - trust and reciprocity - which can be used to explain deviations from the Nash …

Previous work has shown that unobservable random shocks on output have a detrimental effect on effort provision in … random shocks on effort provision. … investigate whether the impact of shocks is similarly pronounced in gift-exchange relationships where the same principalagent pair …

, risk aversion, and reciprocity. Particularly, we are interested in the role of reciprocity because the possibility of …-social, lottery-like setting, where a computer plays the role of the receiver. This means that the relevance of reciprocity … that sendings are mainly driven by overoptimistic beliefs. We use a modified version of the reciprocity model of Dufwenberg …

find that, although overall giving is similar in both countries when subjects know the actual role of luck and effort …