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Self-administered rewards are ubiquitous. They serve as incentives for personal accomplishments and are widely recommended to increase personal motivation. We show that in a model with time-inconsistent and reference-dependent preferences, self-rewards can be a credible and effective tool to...
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Several studies show that social image concerns stimulate pro-social behavior. We study a setting in which there is uncertainty about which action is pro-social. Then, the quest for a better social image can potentially conflict with genuinely pro-social behavior. This conflict can induce "bad"...
Persistent link: https://www.econbiz.de/10014104194
This paper studies the use of discretionary rewards in a finitely repeated principal-agent relationship with moral hazard. We show that the principal, when she obtains a private subjective signal about the agent's performance, may pay discretionary bonuses to provide credible feedback to the...
Persistent link: https://www.econbiz.de/10014059338
Several studies show that social image concerns stimulate pro-social behavior. We study a setting in which there is uncertainty about which action is pro-social. Then, the quest for a better social image can potentially conflict with genuinely pro-social behavior. This conflict can induce...
Persistent link: https://www.econbiz.de/10012863238
To study the effects of reminder nudges in complex environments, we apply a novel experimental approach based on a computer game in which decision makers have to pay attention to and perform multiple actions within a short period of time. The set-up allows us, first, to test the effect of...
Persistent link: https://www.econbiz.de/10014296881
The Peter Principle captures two stylized facts about hierarchies: first, promotions often place employees into jobs for which they are less well suited than for that previously held. Second, demotions are extremely rare. Why do organizations not correct 'wrong' promotion decision? This paper...
Persistent link: https://www.econbiz.de/10010268113
Goals are an important source of motivation. But little is known about why and how people set them. We address these questions in a model based on two stylized facts from psychology and behavioral economics: i) Goals serve as reference points for performance. ii) Present-biased preferences...
Persistent link: https://www.econbiz.de/10010268967
Self-administered rewards are ubiquitous. They serve as incentives for personal accomplishments and are widely recommended as tools for overcoming self-control problems. However, it seems puzzling why self-rewards can work: the prospect of a reward has a motivating force only if the threat of...
Persistent link: https://www.econbiz.de/10010271233