Title
Using both sociological and economic incentives to reduce moral hazard
Date Issued
01 August 2003
Access level
metadata only access
Resource Type
journal article
Author(s)
Richter F.G.C.
Pebe Diaz E.F.
Wade Brorsen B.
Currier K.
Abstract
Economists tend to focus on monetary incentives. In the model developed here, both sociological and economic incentives are used to diminish the apparent moral hazard problem existing in commodity grading. Training that promotes graders' response to sociological incentives is shown to increase expected benefits. The model suggests this training be increased up to the point where the marginal benefit due to training equals its marginal cost. It may be more economical to influence the grader's behavior by creating cognitive dissonance through training and rules rather than by using economic incentives alone.
Start page
364
End page
373
Volume
28
Issue
2
Language
English
OCDE Knowledge area
Ciencias sociales Temas sociales
Scopus EID
2-s2.0-0041738236
Source
Journal of Agricultural and Resource Economics
ISSN of the container
10685502
Sources of information: Directorio de ProducciĂłn CientĂ­fica Scopus