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Lang, Matthias - CESifo - 2014

evaluation indicates bad performance. The justification assures the agent that the principal has not distorted the evaluation …Should principals explain and justify their evaluations? Suppose the principal’s evaluation is private information, but … she can provide justification by sending a costly cheap-talk message. If she does not provide justification, her message …

Persistent link: https://www.econbiz.de/10010781550

Gift-Exchange, Incentives, and Heterogeneous Workers

Non, Arjan - CESifo - 2011

. Furthermore, since some workers do not reciprocate the principal’s altruism, the principal may find it optimal to write a contract … that simultaneously signals his altruism and screens reciprocal worker types. Such a contract is characterised by …

Persistent link: https://www.econbiz.de/10009274519

Do Managers with Limited Liability Take More Risky Decisions? An Information Acquisition Model

Malcomson, James - CESifo - 2010

acting as agents under contract and taking costly actions to acquire information before taking decisions. Limited liability …

Persistent link: https://www.econbiz.de/10008572569

Employee Referral, Social Proximity and Worker Discipline: Theory and Evidence from India

Dhillon, Amrita; Iversen, Vegard; Torsvik, Gaute - CESifo - 2013

We study an important mechanism underlying employee referrals into informal low skilled jobs in developing countries. Employers can exploit social preferences between employee referees and potential workers to improve discipline. The profitability of using referrals increases with referee stakes...

Persistent link: https://www.econbiz.de/10010674452

Incentives to Motivate

Kvaløy, Ola; Schöttner, Anja - CESifo - 2014

We present a model in which a motivator can take costly actions - or what we call motivational effort - in order to reduce the effort costs of a worker, and analyze the optimal combination of motivational effort and monetary incentives. We distinguish two cases. First, the firm owner chooses the...

Persistent link: https://www.econbiz.de/10010877648

Incentives, Reputation and the Allocation of Authority

Englmaier, Florian; Filipi, Ales; Singh, Ravi - CESifo - 2010

We address the question how much authority a principal should delegate to a manager with conflicting interests and uncertain ability in a context in which the manager has both compensation-based and reputational incentives. The optimal level of authority balances the value of the manager's...

Persistent link: https://www.econbiz.de/10008583737

Social Exchange and Common Agency in Organizations

Dur, Robert; Roelfsema, Hein - CESifo - 2007

-hazard problem in attention provision. Lastly, we derive the implications of these contract imperfections for optimal organizational …

Persistent link: https://www.econbiz.de/10005406384

Gift Exchange in the Workplace: Money or Attention?

Dur, Robert - CESifo - 2008

We develop a model of manager-employee relationships where employees care more for their manager when they are more convinced that their manager cares for them. Managers can signal their altruistic feelings towards their employees in two ways: by offering a generous wage and by giving attention....

Persistent link: https://www.econbiz.de/10005181512

Social Interaction, Co-Worker Altruism, and Incentives

Dur, Robert; Sol, Joeri - CESifo - 2008

Social interaction with colleagues is an important job attribute for many workers. To attract and retain workers, managers therefore need to think about how to create and preserve high-quality co-worker relationships. This paper develops a principal-multi-agent model where agents do not only...

Persistent link: https://www.econbiz.de/10005181606

Worker Characteristics and Wage Differentials: Evidence from a Gift-Exchange Experiment

Englmaier, Florian; Strasser, Sebastian; Winter, Joachim - CESifo - 2011

There is ample empirical evidence indicating that a substantial fraction of the population exhibits social preferences. Recent work also shows that social preferences influence the effectiveness of incentives in labor relations. Hence when making contracting decisions, employers should take into...

Persistent link: https://www.econbiz.de/10009364733