Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
956839 | Journal of Economic Theory | 2015 | 15 Pages |
Abstract
In random incentive mechanisms agents choose from multiple problems and a randomization device selects a single problem to determine payment. Agents are assumed to act as if they faced each problem on its own. While this approach is valid when agents are expected utility maximizers, ambiguity-averse agents may use the randomization device to hedge and thereby contaminate the data.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Sophie Bade,