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 present a sorting model in which workers with greater ability and greater risk tolerance move into performance pay …. Third, those workers in performance pay jobs who have greater risk tolerance routinely report greater job satisfaction …

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. …

. Our experiment investigates the impact of performance pay on both incentives and sorting and analyzes the influence of … performance pay. Social motivation and reputation influence both the provision of incentives and their sorting effect. …

-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. …