Hidden Cost of Sanctions in a Dynamic Principal-Agent Model: Reactance to Controls and Restoration of Freedom
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More about this item
Keywords
Dynamic principal-agent model; Hidden cost of controls; Psychological reactance; Ratchet effects; Sanction;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
- D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
NEP fields
This paper has been announced in the following NEP Reports:- NEP-CTA-2022-01-10 (Contract Theory and Applications)
- NEP-MIC-2022-01-10 (Microeconomics)
- NEP-REG-2022-01-10 (Regulation)
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