Jesse · Labor

Shirking

Waiting for Walter to get to the facility, Jesse decides to goof off. When employees aren’t being monitored, there may be an incentive for those employees to shirk (goof off) while still being paid. If firms pay efficiency wages, that may incentivize some workers to avoid shirking, but it’s not always guaranteed.

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Jesse · Labor · Walter

Who Guards the Guards?

When employees have the ability to shirk or steal, firms may invest in monitoring devices to ensure against theft. In the lab, Walter supervises Jesse, but their employer monitors both Walter and Jesse as they work. Hypothetically the guard may be paid a handsome salary to disincentivize him from cheating his employer.

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Behavioral & Game Theory · Foundations · Jesse

Not My Decision

Jesse fills up the RV’s tank and asks for a pack of cigarettes. However, he does not have the money to pay for these. He asks if he can come in a pay later but the cashier tells him that the gas station belongs to her dad, who is very careful when it comes to money. The gas station belongs to the father and he has the incentive to care for it, but the same can be said about his daughter. According to her, Jesse could leave and come back later.

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