One of the standard predictions of the agency theory is that more incentives can be given to agents with lower risk … obtain that lower agent’s risk aversion unambiguously leads to higher incentives when the technology function linking …

assumption, which we relax. We find that, although monetary incentives are effective also with sociallyattentive agents, the … monetary incentives. We also show that the principal benefits from having a socially-attentive agent and how she optimally …

Employees often learn about their ability while working, and the resulting beliefs interact with pay incentives to … job, dynamic selection, effort, and variation in pay incentives. The empirical analysis is based on unique data from a US … which pay incentives affect employment outcomes, profits, and compensation. Under the implemented and the profit …

risk and incentives. Using data from the 1998 Workplace Employment Relations Survey (WERS) representing a cross-section of …

Standard models of moral hazard predict a negative relationship between risk and incentives, but the empirical work has … incentives decreases with risk aversion, more risk-averse agents prefer lower-incentive contracts; thus, in the optimal contract …, incentives are positively correlated with endogenous risk. In contrast, if risk aversion is high enough, the possibility of …

return for taking on underserved tasks, and this prioritization increases as incentives power up. Bonuses may additionally be … used when incentives are sufficiently high-powered, but the optimal bonus is often non-monotone in the strength of … incentives. Our results have important implications for the design of worker reward programs on freelancing platforms such as …

high-powered incentives; otherwise, bonuses perform better …