Cooler Heads Prevail: An Experimental Study on the “Cooling” Effect of the Strategy Method on Agent Resentment ()
ABSTRACT
This study investigates
whether agents’ resentment of controls in a gift-exchange game can be effectively mitigated using the strategy method where
agents’ effort choices are elicited contingent on all possible contract choices
by principals. The results suggest that allowing agents to contemplate contract
choices prospectively results in less resentment and that agents exert higher
effort than without this “cooling” process.
Share and Cite:
Davis, J. (2018) Cooler Heads Prevail: An Experimental Study on the “Cooling” Effect of the Strategy Method on Agent Resentment.
Theoretical Economics Letters,
8, 854-860. doi:
10.4236/tel.2018.85060.