Empirical studies of the principal-agent relationship find that extrinsic incentives work in many instances, linking … drive to work to master a skill or to improve one's self image, is thought to be the key to whether incentives work or not …. If the incentives crowd-out intrinsic motivation, and the effect is large enough, the net motivational effect on effort …

comparison group in China, we examine how both psychological and financial incentives, together with attitudes toward risk, may … rank-based financial incentives. Our results show that performance-ranking information had a significant motivational … effect on average performance for students, but not for that of workers. Adding financial incentives based on rank provided …

performance of the treatment stores. As predicted by theory, we find that treatment stores that lag far behind do not respond to … the incentives, while the responsiveness of treatment stores close to winning a bonus increases in relative performance …

Agents' decisions to exert effort depends on the provided incentives as well as the potential costs for doing so. So …

-for-performance contract depends on how the financial risk associated with the scheme interacts with effort. We find that, under a given … contract, if risk increases with effort, risk-averse (loving) individuals exert less (more) effort. In contrast, when risk is … independent of effort, risk preferences do not affect effort choice. Our findings complement the larger literature on selection …

the use of individual and group incentives boost intensity, whereas plant or firm pay for performance do not seem to …

When designing incentives for a manager, the trade-off between insurance and a "good" allocation of effort across …

that norm. High-powered incentives may crowd out motivation as pessimism about the norm is conveyed. But by choosing fixed …