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Motivation and information design

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  • Habibi, Amir

Abstract

I model a benevolent planner who motivates a time-inconsistent agent by only committing to provide feedback. The optimal feedback mechanism always takes the simple form of recommending an action. I also provide conditions for when the optimal feedback mechanism takes the simple form of a cutoff. I show that providing incentives through feedback always makes the time-inconsistent agent unambiguously better off, a property that does not necessarily hold when monetary instruments are used.

Suggested Citation

  • Habibi, Amir, 2020. "Motivation and information design," Journal of Economic Behavior & Organization, Elsevier, vol. 169(C), pages 1-18.
    • Handle: RePEc:eee:jeborg:v:169:y:2020:i:c:p:1-18
    DOI: 10.1016/j.jebo.2019.10.015
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    Cited by:

    1. Thomas Mariotti & Nikolaus Schweizer & Nora Szech & Jonas von Wangenheim, 2023. "Information Nudges and Self-Control," Management Science, INFORMS, vol. 69(4), pages 2182-2197, April.
    2. Doval, Laura & Skreta, Vasiliki, 2024. "Optimal mechanism for the sale of a durable good," Theoretical Economics, Econometric Society, vol. 19(2), May.
    3. Sergio Cappellini, 2022. "Optimal Unemployment Insurance with Worker Profiling," "Marco Fanno" Working Papers 0294, Dipartimento di Scienze Economiche "Marco Fanno".
    4. Dan Anderberg & Rachel Cassidy & Anaya Dam & Wendy Janssens & Karlijn Morsink & Anouk van Veldhoven, 2024. "Keeping the Peace while Getting Your Way: Information, Persuasion and Intimate Partner Violence," CESifo Working Paper Series 11133, CESifo.
    5. Dan Anderberg & Rachel Cassidy & Wendy Janssens & Anaya Dam & Morsink Karlijn & Anouk van Veldhoven, 2024. "Keeping the peace whilst getting your way: Information, persuasion and intimate partner violence," IFS Working Papers W24/22, Institute for Fiscal Studies.

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    More about this item

    Keywords

    Information design; Moral hazard; Time-inconsistency;
    All these keywords.

    JEL classification:

    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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