Bonus or flat wage? An experiment into the principal-agent problem

We conduct a simple principal-agent experiment in order to find the effects of information asymmetry on compensation. Our aim is the analysis of the appropriate compensation and its impact on employee’s effort. Furthermore we want to compare the offered compensation and the supplied effort in the version without communication and we want to know whether the experimental observations are consistent with the theoretical considerations.The experimenters found out that compensations observed during the experiment were different from those suggested by the theory and although they were theoretically not enough to induce high effort, we could observe high performance supplied by the agents.     

A Quantum Version of Sanov's Theorem

We present a quantum version of Sanov's theorem focussing on a hypothesis testing aspect of the theorem: There exists a sequence of typical subspaces for a given set Ψ of stationary quantum product states asymptotically separating them from another fixed stationary product state. Analogously to the classical case, the separating rate on a logarithmic scale is equal to the infimum of the quantum relative entropy with respect to the quantum reference state over the set Ψ. While in the classical case the separating subsets can be chosen universally, in the sense that they depend only on the chosen set of i.i.d. processes, in the quantum case the choice of the separating subspaces depends additionally on the reference state.     

Reporting behavior: a literature review of experimental studies

Central European Journal of Operations Research - The literature review focuses on reporting behavior under information (a)symmetry both from the perspective of behavioral management accounting and...     

The influence of face-to-face communication: a principal-agent experiment

The principal-agent problem is an interesting problem involved in many everyday relationships, such as the one between company owners and their delegates. Our experiment simulates such a relationship, whereby the task of participating pairs is to negotiate labor contracts. Our aim is to find the effects of face-to-face communication and negotiation on contract framing. We argue that including pre-play communication into the principal-agent problem leads to a significant improvement of agent’s effort and results in changes of the compensation scheme. We show that incentives are not the only possibility to induce high effort. We use content analysis of the video-taped negotiations to find some characteristics of the communication process.     

Typical Support and Sanov Large Deviations of Correlated States

Discrete stationary classical processes as well as quantum lattice states are asymptotically confined to their respective typical support, the exponential growth rate of which is given by the (maximal ergodic) entropy. In the iid case the distinguishability of typical supports can be asymptotically specified by means of the relative entropy, according to Sanov’s theorem. We give an extension to the correlated case, referring to the newly introduced class of HP-states.     

Health-Promoting Capacities of In Vitro and Cultivated Goji (Lycium chinense Mill.) Fruit and Leaves; Polyphenols,Antimicrobial Activity,Macro- and Microelements and Heavy Metals

There is a growing interest among the public in fruit with a positive impact on human health. Two goji berry cultivars (‘No. 1’ and ‘New Big’) were propagated in vitro, grown in an orchard and then evaluated for macro- and microelements and harmful heavy metals (i.e., Pb, Ni, and Cd). The leaves and fruit were also assessed for nutritional value, polyphenols and the antimicrobial activity of the leaves. ‘New Big’ was characterized by a higher content of macro elements in the leaves (in vitro and orchard) and a higher content of microelements in the fruit. The harmful substances content was below the minimum value. Furthermore, neither the fruit nor the leaves contained cadmium. This study also indicated that leaves had a higher content of polyphenols compared to the fruit. The fruits were characterized by their health-promoting capacities, while the leaves were characterized by their antibacterial activity. Among the Gram-positive bacteria, the most sensitive strain was Bacillus subtilis, and among the Gram-negative bacteria, it was Proteus vulgaris. Taking into consideration the Recommended Daily Allowance (RDA) for minerals, goji berries can be declared to be a source of Cu, Fe, Mn, Zn and P.     

Various motivations for managerial (mis)reporting – an experimental study

In the experiment we model all possible consequences from misreporting for both the shareholder and for the manager, since we are interested in patterns in reporting behaviour resulting from different motivations for potential misrepresentation. This allows for examining the stability of the (mis)reporting behaviour in different treatments. Agents are primarily driven by the consequences for themselves rather than by the consequences for the principal, while deciding on misreporting. Participants are willing to sacrifice a small gain for themselves in order to prevent a greater loss for the principal. If agents misreport, they do it in order to generate positive rather than negative consequences for themselves. Reports in favour of the principal, but fruitless or even costly for the agent are very rare. The experiment indicates also that pro-social agents report more truthfully than pro-self agents.     

The Shannon-McMillan theorem for ergodic quantum lattice systems

We formulate and prove a quantum Shannon-McMillan theorem. The theorem demonstrates the significance of the von Neumann entropy for translation invariant ergodic quantum spin systems on -lattices: the entropy gives the logarithm of the essential number of eigenvectors of the system on large boxes. The one-dimensional case covers quantum information sources and is basic for coding theorems.