talented workers leads to an escalating reliance on performance pay and other high-powered incentives, thereby shifting effort … incentives downward in order to extract rents. More generally, as declining market frictions lead employers to compete more …, while inequality tends to rise monotonically. Bonus caps and income taxes can help restore balance in agents' incentives and …

talented workers leads to an escalating reliance on performance pay and other high-powered incentives, thereby shifting effort … distorts incentives downward in order to extract rents. More generally, as declining market frictions lead employers to compete …, while inequality tends to rise monotonically. Bonus caps and income taxes can help restore balance in agents' incentives and …

Our paper reconsiders the triadic design proposed by Cox (2004) to identify trust and reciprocity in investment games … Cox) and strategy method. By the latter we are able to control reciprocity for initial inequality, which is endogenous … when reciprocity is investigated. Finally, we test the existence of an emotional bias, i.e. we test if expectations …

incentives effects compared to adverse effects due to fairness considerations. We argue that the dispersion of wage increases … rather than wage levels is a crucial measure for monetary incentives in firms. The larger the dispersion of wage increases … the higher the amount of monetary incentives in firms. In contrast, huge wage inequality without any promotion …

We investigate the effects of inequality in wealth on the incentives to contribute to a public good when agents are …