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 demonstrate that effectiveness of performance-contingent incentives is inversely related to individual risk … positively correlated with risk exposure and 2) the possibly choke-inducing stress accompanying financial uncertainty. In two … performance pay and risk-aversion levels. Moreover, we show that both mechanisms help explain this result. For about 25% of …

are risk-averse, the principal should let each agent decide, which evaluation method he prefers. …

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

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. …

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

disadvantageous inequity aversion and risk aversion. In the second half of the experiment, the effect of individual preferences is …

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. …