A simple impossibility result in behavioral contract theory

C-Tier
Journal: Economics Letters
Year: 2011
Volume: 113
Issue: 3
Pages: 307-309

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

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

Abstract

This paper studies a contract between an optimistic agent and a realistic principal, both risk-neutral. Even with complete contracts and ex-ante symmetric information, it may be impossible to achieve the first-best unless the weight on emotions is sufficiently low.

Technical Details

RePEc Handle
repec:eee:ecolet:v:113:y:2011:i:3:p:307-309
Journal Field
General
Author Count
3
Added to Database
2026-01-25