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A substantial body of research investigates the design of incentives in firms, yet less is known about incentives in …. Third, contrary to existing laboratory evidence, financial incentives do not crowd out intrinsic motivation in this setting. …
Persistent link: https://www.econbiz.de/10011083234
leads to weaker incentives for effort, compared with non-integration. Our theory makes minimal assumptions about the … division managers. The division managers' job is to create profitable investment projects. Giving the managers incentives to do …' incentives. The resulting tradeoff between a better use of resources and diminished incentives for effort determines whether …
Persistent link: https://www.econbiz.de/10005666612
obtain evidence on the effect of stronger incentives on productive and destructive effort. Using as control the behavior of … the same teams in a competition that experienced no changes in incentives, we provide differences-in-differences estimates …, and that indeed attendance suffered as a result of the incentive change. Thus, teams responded to stronger incentives, but …
Persistent link: https://www.econbiz.de/10005114301
We characterize optimal incentive contracts in a moral hazard framework extended in two directions. First, after effort provision, the agent is free to leave and pursue some ex-post outside option. Second, the value of this outside option is increasing in effort, and hence endogenous. Optimal...
Persistent link: https://www.econbiz.de/10008554231
We study the interplay of share prices and firm decisions when share prices aggregate and convey noisy information about fundamentals to investors and managers. First, we show that the informational feedback between the firm's share price and its investment decisions leads to a systematic...
Persistent link: https://www.econbiz.de/10009275969
tasks. We analyze the effects of the salience of incentives in a team production setting where the principal has an interest … incentive system without changing the incentive system. The results indicate that salience of incentives itself is statistically … and economically important for performance. We find that higher salience of incentives for quantity increases quantity …
Persistent link: https://www.econbiz.de/10011084038
productivity, but they also underscore the risks of quantity-based incentives where quality is important. …
Persistent link: https://www.econbiz.de/10011084419
pay as well as local (division-level) and global (firm-level) incentives. Our estimates show that for the average firm …
Persistent link: https://www.econbiz.de/10005792092
This paper studies the effect of changes in foreign competition on the incentives faced by U.S. managers in the form of …
Persistent link: https://www.econbiz.de/10005124375
A vast body of empirical studies lends support to the incentive effects of rank-order tournaments. Evidence comes from experiments in laboratories and non-experimental studies exploiting sports or firm data. Selection of competitors across tournaments may bias these non-experimental studies,...
Persistent link: https://www.econbiz.de/10005136509