A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in … environments with little uncertainty and for agents with low degrees of risk aversion. There is an ongoing debate in the literature … use of a unique representative data set, we find clear evidence that risk aversion has a highly significant and …

A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in … environments with little uncertainty and for agents with low degrees of risk aversion. There is an ongoing debate in the literature … use of a unique representative data set, we find clear evidence that risk aversion has a highly significant and …

. We confirm that workers who are risk tolerant also sort into jobs with performance appraisals but explain why the … influence of the locus of control and risk tolerance should not be additive. We demonstrate this by estimating a routinely large … revealed only when taking into account the interaction of locus of control and risk tolerance. …

experiment that analyzes the influence of other-regarding preferences on sorting and incentives. Experimental evidence shows that … the provision of incentives and their sorting effect. …

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 …

This paper investigates the effects of managerial incentives on favoritism in promotion decisions. First, we … mitigated by pay-for-performance incentives for managers who decide upon promotion. Second, we analyze matched employer …

-subject variance is substantially lower than when the same payment scheme is imposed. Mainly based on risk aversion, sorting is …