This study investigates if and how the influence of compensation interdependence on excessive risk-taking depends on mutual monitoring of risky investment decisions. As each unit of excessive risk that is taken represents risk-taking beyond the expected value-optimizing level, individuals have a...

We investigate by means of an experiment how the perception of preventive management controls depends on task complexity and how both affect effort allocation in a multi-task environment. We predict and find that individuals perceive controls as more negative, i.e., annoying and obstructive, if...