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Goal-oriented agents in a market

Author

Listed:
  • Inés Macho-Stadler

    (UAB - Universitat Autònoma de Barcelona = Autonomous University of Barcelona = Universidad Autónoma de Barcelona)

  • David Pérez-Castrillo

    (UAB - Universitat Autònoma de Barcelona = Autonomous University of Barcelona = Universidad Autónoma de Barcelona)

  • Nicolas Quérou

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

We consider a market where "standard" risk-neutral agents coexist with "goaloriented" agents who, in addition to the expected income, seek a high-enough monetary payoff (the "trigger") to fulfill a goal. We analyze a two-sided one-to-one matching model where the matching between principals and agents and incentive contracts are endogenous. In any equilibrium contract, goal-oriented agents are matched with the principals with best projects and receive the trigger with positive probability. Moreover, goal and monetary incentives are complementary: goaloriented agents receive stronger monetary incentives. Finally, we discuss policy interventions in relevant environments.

Suggested Citation

  • Inés Macho-Stadler & David Pérez-Castrillo & Nicolas Quérou, 2021. "Goal-oriented agents in a market," Post-Print hal-03214933, HAL.
    • Handle: RePEc:hal:journl:hal-03214933
    DOI: 10.1016/j.joep.2021.102378
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-03214933
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    References listed on IDEAS

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    2. Soetevent, Adriaan R., 2022. "Short run reference points and long run performance. (No) Evidence from running data," Journal of Economic Psychology, Elsevier, vol. 89(C).

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    More about this item

    Keywords

    Goal-oriented agents; incentives; matching market;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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