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  • 1
    Publication Date: 2016-04-21
    Description: A well-known rationale for representative democracy is that direct democracy leads to a free-rider problem as to the collection of information. A problem with this rationale is that it takes for granted that representatives collect information. In this paper we examine whether or not electoral competition induces political parties or candidates to collect information about policy consequences. We show that the answer to this question depends on the cost of information collection. More surprisingly, we find that endogenizing information may lead to divergence of policy platforms.
    Keywords: D72 ; ddc:330 ; information collection ; spatial voting models ; Politische Partei ; Informationsverhalten ; Informationsversorgung ; Ökonomische Theorie der Demokratie
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 2
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    Amsterdam and Rotterdam: Tinbergen Institute
    Publication Date: 2016-04-21
    Description: We develop a simple model that describes individuals’ self-assessments oftheir abilities. We assume that individuals learn about their abilities from appraisalsof others and experience. Our model predicts that if communicationis imperfect, then (i) appraisals of others tend to be too positive, and (ii) overconfidenceleading to too much activism is more likely than underconfidenceleading to too much passivity. The predictions of our model are consistentwith findings in the social psychological literature.
    Keywords: D81 ; D82 ; D83 ; ddc:330 ; self-assessments ; learning about ability ; coaching ; overconfidence ; underconfidence
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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  • 3
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    Amsterdam and Rotterdam: Tinbergen Institute
    Publication Date: 2016-04-21
    Description: We identify the conditions under which voters can induce political parties to collect information and to select policies which are optimal from the representative voter’s point of view. We show that when parties are office motivated the voting rule should encourage parties to collect information. Voting rules that focus on the opposition party sometimes dominate voting rules that focus on the incumbent party. When parties are policy motivated, they also have to be motivated to select good policies. Generally, it is easier to stimulate policy motivated parties than office motivated parties to collect information. However, in contrast to office motivated parties, policy motivated parties will sometimes select policies that conflict with the representative voter’s interest.
    Keywords: D72 ; ddc:330 ; political competition ; information ; polarization. ; Politische Partei ; Informationsversorgung ; Neue politische Ökonomie ; Theorie
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 4
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    Amsterdam and Rotterdam: Tinbergen Institute
    Publication Date: 2016-04-21
    Description: Boards of directors face the twin task of disciplining and screening executives. To perform these tasks directors do not have detailed information about executives' behaviour, and only infrequently have information about the success or failure of initiated strategies, reorganizations, mergers etc. We analyse the nature of (implicit) retention contracts boards use to discipline and screen executives. Consistent with empirical observation, we find that executives may become overly active to show their credentials; that the link between bad performance and dismissal is weak; and that boards occasionally dismiss competent executives.
    Keywords: G30 ; G34 ; ddc:330 ; board of directors ; turnover ; retention contracts ; selection ; moral hazard ; empire building
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 5
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    Amsterdam and Rotterdam: Tinbergen Institute
    Publication Date: 2016-04-21
    Description: Using simple game-theoretical models, this paper studies the role of pre-determined rules for HRM policies. We consider a model in which HRM decisions affect employees' self-images and thereby their motivation. We show that in the absence of written rules, managers are too reluctant (1) to differentiate between employees on the basis of their abilities, and (2) to terminate employment of employees on probation. Generally, organizations benefit from committing to strict rules for various HRM practices.
    Keywords: M5 ; D82 ; D83 ; ddc:330 ; rules ; human resource management policies ; self-image ; motivation ; Personalmanagement ; Asymmetrische Information ; Leistungsmotivation ; Spieltheorie
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
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  • 6
    Publication Date: 2016-04-21
    Description: In this laboratory experiment we study the use of strategic ignorance to delegate real authority within a firm. A worker can gather information on investment projects, while a manager makes the implementation decision. The manager can monitor the worker. This allows her to better exploit the information gathered by the worker, but also reduces the worker's incentives to gather information in the first place. Both effects of monitoring are influenced by the interest alignment between manager and worker. Our data confirms the theoretical predictions that optimal monitoring depends non-monotonically on the level of interest alignment. We also find evidence for hidden costs of control and preferences for control, but these have no substantial effects on organizational outcomes.
    Keywords: D20 ; D40 ; D63 ; D82 ; J30 ; ddc:330 ; Delegation ; Real Authority ; Strategic Ignorance ; Kooperative Führung ; Autorität ; Asymmetrische Information ; Test
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: English
    Type: doc-type:workingPaper
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