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Players exert costly efforts simultaneously and independently.
This would imply that there is a trade-off between inducing a worker to exert costly effort and inducing him to tell the truth.
We study an economic setting in which a principal motivates a team of strategic agents to exert costly effort toward the success of a joint project.
Additionally, we find that a penalty incentive frame motivates low relationship quality subordinates to not only withhold effort to help the manager, but to exert costly effort to harm the manager.
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This paper studies a retailer outsourcing the production to a supplier who can improve the quality of the production cost information by exerting costly forecasting effort.
Summing up, I have set up a simple model of a bank and a supervisor in which the supervisor exerts costly effort in order to observe a nonverifiable signal of the bank's solvency, which is used to decide the bank's early liquidation.
This reflects the intuition that exerting a low effort level is less costly than exerting a high effort level and that it is less demanding to provide an additional unit of effort for low effort than for high effort levels.
But when people think that America's unique role in the world is basically legitimate, that power becomes less costly to exert and to sustain.
A financial intermediary creates and then sells to outside investors defaultable assets, whose default risk is determined by the unobservable costly effort exerted by the intermediary.
The decision to omit Odemwingie and Thomas appeared to be costly as Newcastle exerted their dominance in the early stages.
In the New York state cohort, where insurers exert pressure to discharge patients to less costly rehabilitation facilities, nearly 40% of patients were discharged within five days and 82% discharged within 10 or fewer days.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com