Wage, effort and principal payoffs in the trust–incentive treatment with reputation
| Panel A | Panel B | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Trust contract | Incentive contract | |||||||||
| Wage offer | No. of offers | P’s payoff | e=1 | e>1 | No. of rejections | No. of offers | P’s payoff | e<e* | e⩾e* | No. of rejections |
| w w<5 | 22 | 2.32 | 8 | 0 | 14 | 4 | 0.75 | 4 | 0 | 0 |
| Medium 5⩽w⩽10 | 18 | 10.5 | 10 | 8 | 0 | 8 | 9.25 | 3 | 3 | 2 |
| High 10<w | 26 | 27.31 | 3 | 22 | 1 | 22 | 11.5 | 8 | 8 | 6 |
| All | 66 | 40.13 | 21 | 30 | 15 | 34 | 20.75 | 15 | 11 | 8 |
| Panel A | Panel B | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Trust contract | Incentive contract | |||||||||
| Wage offer | No. of offers | P’s payoff | No. of rejections | No. of offers | P’s payoff | No. of rejections | ||||
| 22 | 2.32 | 8 | 0 | 14 | 4 | 0.75 | 4 | 0 | 0 | |
| Medium | 18 | 10.5 | 10 | 8 | 0 | 8 | 9.25 | 3 | 3 | 2 |
| High | 26 | 27.31 | 3 | 22 | 1 | 22 | 11.5 | 8 | 8 | 6 |
| All | 66 | 40.13 | 21 | 30 | 15 | 34 | 20.75 | 15 | 11 | 8 |
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