Are you a good employee or simply a good guy? influence costs and contract design

We develop a principal–agent model with a moral hazard problem in which the principal has access to a hard signal (the level of output) and a soft behavioral signal (the supervision signal) about the agent's level of effort. In our model, the agent can initiate influence activities and manipulate the behavioral signal. These activities are costly for the principal as they detract the agent from the productive task. We show that the agent's ability to manipulate the behavioral signal leads to low-powered incentives and increases the cost of implementing the efficient equilibrium as a result. Interestingly, the fact that manipulation activities entail productivity losses may lead to the design of influence-free contracts that deter manipulation and lead to high-powered incentives. This result implies that the optimal contract (and whether manipulation is tolerated in equilibrium or not) depends on the magnitude of the productivity-based influence costs. We show that it may be optimal for the principal not to supervise the agent, even if the cost of supervision is arbitrarily low

LOFAR 150-MHz observations of SS 433 and W50

We present Low-Frequency Array (LOFAR) high-band data over the frequency range 115-189 MHz for the X-ray binary SS 433, obtained in an observing campaign from 2013 February to 2014 May. Our results include a deep, wide-field map, allowing a detailed view of the surrounding supernova remnant W50 at low radio frequencies, as well as a light curve for SS 433 determined from shorter monitoring runs. The complex morphology of W50 is in excellent agreement with previously published higher frequency maps; we find additional evidence for a spectral turnover in the eastern wing, potentially due to foreground free-free absorption. Furthermore, SS 433 is tentatively variable at 150 MHz, with both a debiased modulation index of 11 per cent and a Χ 2 probability of a flat light curve of 8.2 × 10 -3 . By comparing the LOFAR flux densities with contemporaneous observations carried out at 4800 MHz with the RATAN-600 telescope, we suggest that an observed ~0.5-1 Jy rise in the 150-MHz flux density may correspond to sustained flaring activity over a period of approximately 6 months at 4800 MHz. However, the increase is too large to be explained with a standard synchrotron bubble model. We also detect a wealth of structure along the nearby Galactic plane, including the most complete detection to date of the radio shell of the candidate supernova remnant G38.7-1.4. This further demonstrates the potential of supernova remnant studies with the current generation of low-frequency radio telescopes

Economic Analysis of Knowledge: The History of Thought and the Central Themes

Following the development of knowledge economies, there has been a rapid expansion of economic analysis of knowledge, both in the context of technological knowledge in particular and the decision theory in general. This paper surveys this literature by identifying the main themes and contributions and outlines the future prospects of the discipline. The wide scope of knowledge related questions in terms of applicability and alternative approaches has led to the fragmentation of research. Nevertheless, one can identify a continuing tradition which analyses various aspects of the generation, dissemination and use of knowledge in the economy