A worker's utility may increase in his own income, but envy can make his utility decline with his employer's income … various assumptions about the object and generality of envy. Envy amplifies the effect of incentives on effort and, therefore …, increases optimal incentive pay. Moreover, envy can make profitsharing optimal, even when the worker's effort is fully …

A worker's utility may increase with his income, but envy can make his utility decline with his employer's income. This … article uses a principal-agent model to study profit-maximizing contracts when a worker envies his employer. Envy tightens the … applications of our theoretical work: envy can explain why a lower-level worker is awarded stock options, why incentive pay is …

-pay auctions and rankorder tournaments. This survey provides a review of experimental research on these three canonical contests …

Splitting leagues or tournaments seems to be puzzling when agents are homogeneous and splitting leads to a negative … tournaments (i.e., tournaments that are intertemporally linked), which also enhances incentives. …