How ego-threats facilitate contracts based on subjective evaluations ∗

Abstract

We show that individuals’ desire to protect their self-esteem against ego-threatening feedback can mitigate moral hazard in environments with purely subjective performance evaluations. In line with evidence from social psychology we assume that agents’ react aggressively to evaluations by the principal which do not coincide with their own positive self… (More)

5 Figures and Tables

Topics

  • Presentations referencing similar topics