| |
|
|
|
How often should you open the door? Optimal monitoring to screen heterogeneous agents
|
|
|
| |
|
IZA Seminar |
Place: Schaumburg-Lippe-Str. 9, 53113 Bonn |
Date: 04.11.2003, 12:15 - 13:30 |
| |
|
|
|
| |
|
Abstract: |
This paper shows that monitoring too much a partner in the initial
phase of a relationship may not be optimal if the goal is to determine
her loyalty to the match and if the cost of ending the relationship
increases over time. The intuition is simple: by monitoring too much
we learn less on how the partner will behave when she is not monitored.
Only by giving to the partner the possibility to mis-behave she might
be tempted to do it, and only in this case there is a chance to learn
her type at a time where separation would be possible at a relatively
low cost. |
| |
|
Download complete paper  |
| |
|
|
For more information, please contact seminar@iza.org
|
