Salience Bias and Overwork

In this study, we enrich a standard principal–agent model with hidden action by introducing salience-biased perception on the agent’s side. The agent’s misguided focus on salient payoffs, which leads the agent’s and the principal’s probability assessments to diverge, has two effects: First, the agen...

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Bibliographic Details
Published in:	Games
Main Authors:	Fabio Römeis, Fabian Herweg, Daniel Müller
Format:	Article
Language:	English
Published:	MDPI AG 2022-01-01
Subjects:	context-dependent preferences hidden action moral hazard overwork salience theory
Online Access:	https://www.mdpi.com/2073-4336/13/1/15

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