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Registration

Field Before After
Trial Status in_development completed
Last Published December 02, 2017 07:16 PM January 19, 2024 05:14 AM
Study Withdrawn No
Study Withdrawal Date November 30, 2021
Intervention Completion Date December 15, 2017
Data Collection Complete Yes
Final Sample Size: Number of Clusters (Unit of Randomization) 168
Was attrition correlated with treatment status? No
Final Sample Size: Total Number of Observations 168
Final Sample Size (or Number of Clusters) by Treatment Arms 42 agents by treatment
Is there a restricted access data set available on request? Yes
Restricted Data Contact [email protected]
Program Files No
Data Collection Completion Date December 15, 2017
Is data available for public use? No
Keyword(s) Labor Labor
Building on Existing Work No
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Papers

Field Before After
Paper Abstract Loss contracts are rarely observed in practice, although research suggests that they induce higher effort compared to gain contracts. We experimentally examine one potential reason for this scarcity: agents’ reciprocity toward the principal might be negatively affected by loss contracts. First, agents worked on a real effort task under either a gain or a loss contract. Second, principals and agents played a trust game. We find that loss contracts induce more effort, and thus a higher payoff for the principal in the real effort task. However, we do not find a spillover effect of contract framing in the trust game. Differences in reciprocity are small in size and not significant. Thus, they cannot explain the rare use of loss contracts in practice.
Paper Citation von Bieberstein, F. & Essl, A. & Kathrin Friedrich (2020). Gain versus loss contracts: Does contract framing affect agents’ reciprocity?, Economics Letters, 187,108846.
Paper URL https://doi.org/10.1016/j.econlet.2019.108846
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