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Cooler Heads Prevail: An Experimental Study on the “Cooling” Effect of the Strategy Method on Agent Resentment
Chapman University, Orange, USA
- 1 Chapman University, Orange, USA
Theoretical Economics Letters·Volume 08 (2018)·Pages 854–860·Published 19 March 2018·DOI10.4236/tel.2018.85060
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Abstract
This study investigates whether agents’ resentment of controls in a gift-exchange game can be effectively mitigated using the strategy method where agents’ effort choices are elicited contingent on all possible contract choices by principals. The results suggest that allowing agents to contemplate contract choices prospectively results in less resentment and that agents exert higher effort than without this “cooling” process.
KeywordsStrategy MethodHidden Cost of ControlsGift-Exchange Game
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