Promotions and Incentives: The Case of Multi-Stage Elimination Tournaments

Promotion tournaments play an important role for the provision of incentives in firms. In this paper, we extend research on single-stage rank-order tournaments and analyze behavior in multi-stage elimination tournaments. The main treatment of our laboratory experiment is a two-stage tournament in which equilibrium efforts are the same in both stages. We compare this treatment to a strategically equivalent one-stage tournament and to another two-stage tournament with a more convex wage structure. Confirming previous findings average effort in our one-stage treatment is close to Nash equilibrium. In contrast, subjects in our main treatment provide excess effort in the first stage both with respect to Nash predictions and compared to the equivalent one-stage tournament. The results for the more convex two-stage tournament show that excess effort in the first stage is a robust finding and that subjects react only weakly to differences in the wage structure.personnel economics, tournament, incentives, laboratory experiment

Implicit Contracts, Unemployment, and Labor Market Segmentation

We analyze the impact of imperfect contract enforcement on the emergence of unemployment. In an experimental labor market where trading parties can form long-term employment relationships, we compare a work environment where effort is observable, but not verifiable to a situation where explicit contracts are feasible. Our main result shows that unemployment is much higher when third-party contract enforcement is absent. Unemployment is involuntary, being caused by firms' employment and contracting policy. Moreover, we show that implicit contracting can lead to a segmentation of the labor market. Firms in both segments earn similar profits, but workers in the secondary sector face much less favorable conditions than their counterparts in primary-sector jobs.incentives, implicit contracts, unemployment, fairness, dual labor markets

Incentives and Information as Driving Forces of Default Effects

The behavioral relevance of non-binding defaults is well established. While most research has focused on decision makers’ responses to a given default, we argue that this individual decision making perspective is incomplete. Instead, a comprehensive understanding of default effects requires to take account of the strategic interaction between default setters and decision makers. We analyze theoretically and empirically which defaults emerge in such interactions, and under which conditions defaults are behaviorally most relevant. Our analysis demonstrates that the alignment of interests between default setters and decision makers, as well as their relative level of information are key drivers of default effects. In particular, default effects are more pronounced if the interests of the default setter and decision makers are more closely aligned. Moreover, decision makers are more likely to follow default options the less they are privately informed about the relevant decision environment

Eingeschränkt rationales Verhalten: Evidenz und wirtschaftspolitische Implikationen

Die Präzision ökonomischer Prognosen und die Qualität politischer Handlungsempfehlungen hängen in entscheidendem Ausmaß von der Qualität des zugrunde liegenden Verhaltensmodells ab. Nur ein empirisch gut fundiertes Modell ökonomischen Handelns erlaubt es, die Konsequenzen politischer Maßnahmen präzise abzuschätzen. In der wirtschaftswissenschaftlichen Analyse ist das Konzept des Homo Oeconomicus als Entscheidungs- und Verhaltensmodell weit verbreitet. Empirische Ergebnisse aus der Verhaltensökonomik legen jedoch zwei grundsätzliche Abweichungen vom traditionellen Modell des Homo Oeconomicus nahe: Abweichungen vom Prinzip der uneingeschränkten Rationalität einerseits und die Infragestellung einer universellen Eigennutzorientierung andererseits. Die vorliegende Arbeit gibt einen Überblick über ausgewählte, wirtschaftspolitisch bedeutsame Abweichungen vom Rationalitätspostulat. Anschließend diskutieren wir am Beispiel so genannter "nicht bindender Defaultoptionen", weshalb für eingeschränkt rationale Akteure politische Maßnahmen oder rechtliche Regelungen auch dann Verhaltenskonsequenzen haben können, wenn diese aus rationaler Sichtweise nicht zu erwarten wären und möglicherweise durch den Gesetzgeber auch nicht beabsichtigt sind. Abschließend stellen wir dar, wie nicht bindende Defaults selbst als Politikinstrument eingesetzt werden können: klug gewählt können sie dabei helfen, Entscheidungen zu verbessern ohne dabei individuelle Wahlfreiheit einzuschränken.Verhaltensökonomik, Paternalismus, Wirkung von Politikmaßnahmen, nicht-bindende Regeln, Wahrscheinlichkeitsverzerrungen, eingeschränkte Rationalität

Secure Communication Using Electronic Identity Cards for Voice over IP Communication, Home Energy Management, and eMobility

Using communication services is a common part of everyday life in a personal or business context. Communication services include Internet services like voice services, chat service, and web 2.0 technologies (wikis, blogs, etc), but other usage areas like home energy management and eMobility are will be increasingly tackled. Such communication services typically authenticate participants. For this identities of some kind are used to identify the communication peer to the user of a service or to the service itself. Calling line identification used in the Session Initiation Protocol (SIP) used for Voice over IP (VoIP) is just one example. Authentication and identification of eCar users for accounting during charging of the eCar is another example. Also, further mechanisms rely on identities, e.g., whitelists defining allowed communication peers. Trusted identities prevent identity spoofing, hence are a basic building block for the protection of communication. However, providing trusted identities in a practical way is still a difficult problem and too often application specific identities are used, making identity handling a hassle. Nowadays, many countries introduced electronic identity cards, e.g., the German "Elektronischer Personalausweis" (ePA). As many German citizens will possess an ePA soon, it can be used as security token to provide trusted identities. Especially new usage areas (like eMobility) should from the start be based on the ubiquitous availability of trusted identities. This paper describes how identity cards can be integrated within three domains: home energy management, vehicle-2-grid communication, and SIP-based voice over IP telephony. In all three domains, identity cards are used to reliably identify users and authenticate participants. As an example for an electronic identity card, this paper focuses on the German ePA

The inverse perovskite BaLiF3: single-crystal neutron diffraction and analyses of potential ion pathways

Doped barium lithium trifluoride has attracted attention as component for scintillators, luminescent materials and electrodes. With lithium and fluoride, it contains two possibly mobile species, which may account for its ionic conductivity. In this study, neutron diffraction on oxide-containing BaLiF3 single-crystals is performed at up to 636.2°C. Unfortunately, ion-migration pathways could not be mapped by modelling anharmonic ion displacement or by inspecting the scattering-length density that was reconstructed via maximum-entropy methods. However, analyses of the topology and bond-valence site energies derived from the high-temperature structure reveal that the anions can migrate roughly along the edges of the LiF6 coordination octahedra with an estimated migration barrier of ∼0.64 eV (if a vacancy permits), whereas the lithium ions are confined to their crystallographic positions. This finding is not only valid for the title compound but for ion migration in all perovskites with Goldschmidt tolerance factors near unity

Clinical Guideline for Treating Acute Respiratory Insufficiency with Invasive Ventilation and Extracorporeal Membrane Oxygenation: Evidence-Based Recommendations for Choosing Modes and Setting Parameters of Mechanical Ventilation

For patients with acute respiratory insufficiency, mechanical (invasive) ventilation is a fundamental therapeutic measure to ensure sufficient gas exchange. Despite decades of strong research efforts, central questions on mechanical ventilation therapy are still answered incompletely. Therefore, many different ventilation modes and settings have been used in daily clinical practice without scientifically sound bases. At the same time, implementation of the few evidence-based therapeutic concepts (e.g., lung protective ventilation) into clinical practice is still insufficient. The aim of our guideline project Mechanical ventilation and extracorporeal gas exchange in acute respiratory insufficiency was to develop an evidence-based decision aid for treating patients with and on mechanical ventilation. It covers the whole pathway of invasively ventilated patients (including indications of mechanical ventilation, ventilator settings, additional and rescue therapies, and liberation from mechanical ventilation). To assess the quality of scientific evidence and subsequently derive recommendations, we applied the Grading of Recommendations, Assessment, Development and Evaluation method. For the first time, using this globally accepted methodological standard, our guideline contains recommendations on mechanical ventilation therapy not only for acute respiratory distress syndrome patients but also for all types of acute respiratory insufficiency. This review presents the two main chapters of the guideline on choosing the mode of mechanical ventilation and setting its parameters. The guideline group aimed that - by thorough implementation of the recommendations - critical care teams may further improve the quality of care for patients suffering from acute respiratory insufficiency. By identifying relevant gaps of scientific evidence, the guideline group intended to support the development of important research projects

Clinical Guideline for Treating Acute Respiratory Insufficiency with Invasive Ventilation and Extracorporeal Membrane Oxygenation: Evidence-Based Recommendations for Choosing Modes and Setting Parameters of Mechanical Ventilation

For patients with acute respiratory insufficiency, mechanical (“invasive”) ventilation is a fundamental therapeutic measure to ensure sufficient gas exchange. Despite decades of strong research efforts, central questions on mechanical ventilation therapy are still answered incompletely. Therefore, many different ventilation modes and settings have been used in daily clinical practice without scientifically sound bases. At the same time, implementation of the few evidence-based therapeutic concepts (e.g., “lung protective ventilation”) into clinical practice is still insufficient. The aim of our guideline project “Mechanical ventilation and extracorporeal gas exchange in acute respiratory insufficiency” was to develop an evidence-based decision aid for treating patients with and on mechanical ventilation. It covers the whole pathway of invasively ventilated patients (including indications of mechanical ventilation, ventilator settings, additional and rescue therapies, and liberation from mechanical ventilation). To assess the quality of scientific evidence and subsequently derive recommendations, we applied the Grading of Recommendations, Assessment, Development and Evaluation method. For the first time, using this globally accepted methodological standard, our guideline contains recommendations on mechanical ventilation therapy not only for acute respiratory distress syndrome patients but also for all types of acute respiratory insufficiency. This review presents the two main chapters of the guideline on choosing the mode of mechanical ventilation and setting its parameters. The guideline group aimed that – by thorough implementation of the recommendations – critical care teams may further improve the quality of care for patients suffering from acute respiratory insufficiency. By identifying relevant gaps of scientific evidence, the guideline group intended to support the development of important research projects