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Consider a principal-agent relationship in which more effort by the agent raises the likelihood of success. Does rewarding success, i.e., paying a bonus, increase effort in this case? I find that bonuses have not only an incentive but also an income effect. Overall, bonuses paid for success may...
Persistent link: https://www.econbiz.de/10010268396
We investigate a team setting in which workers have different degrees of commitment to the outcome of their work. We show that if there are complementarities in production and if the team manager has some information about team members, interventions that the manager undertakes in order to...
Persistent link: https://www.econbiz.de/10010268432
-period experiment. In equilibrium, firms will offer deferred compensation: first period productivity is positive and wages are zero …, while third period productivity is zero and wages are positive. The experiment produces strong evidence that deferred …
Persistent link: https://www.econbiz.de/10010261943
confirmed in a real effort experiment. …
Persistent link: https://www.econbiz.de/10010268881
reasonably approximate real-life decision makers? behavior. Testing this theory with field data is difficult since typically …
Persistent link: https://www.econbiz.de/10010262147
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. …
Persistent link: https://www.econbiz.de/10010261940
tasks. We analyze the effects of the salience of incentives in a team production setting where the principal has an interest … in quantity and quality of output. We use data from a controlled field experiment that changed the communication of the … incentive system without changing the incentive system. The results indicate that salience of incentives itself is statistically …
Persistent link: https://www.econbiz.de/10010282221
learn the abilities of agents. Theory suggests high first-period equilibrium effort in the hidden ability treatment but no … conclude that transparency does not weaken, but strengthen career concerns incentives. …
Persistent link: https://www.econbiz.de/10010261580
the performances of co-workers. Assuming heterogeneity among the workers the interplay of emotions and incentives is … identify certain conditions under which emotions lead to additional incentives and under which the employer benefits from …
Persistent link: https://www.econbiz.de/10010262021
, which occur in both compensation incentives and team composition. The results of a real effort experiment conducted with … with managers from companies with different incentives, work habits and recruiting methods. In this paper, we investigate … managers within a large pharmaceutical company not only show that changes in compensation incentives affect performance but …
Persistent link: https://www.econbiz.de/10010276427