Supervisory information and loss aversion

C-Tier
Journal: Economics Letters
Year: 2021
Volume: 204
Issue: C

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This study examines the optimality of allowing corrupt interactions (bribery, framing and extortion) between the supervisor and the agent when the agent is loss averse. We show that although inducing bribery leads to effective usage of the supervisory information, preventing all corrupt interactions between the supervisor and the agent by disregarding some of supervisory information can be optimal.

Technical Details

RePEc Handle
repec:eee:ecolet:v:204:y:2021:i:c:s0165176521001853
Journal Field
General
Author Count
2
Added to Database
2026-01-29