Incentives often distort behavior: they induce agents to exert effort but this effort is not employed optimally. This …

We examine the effects of incentives in a simple model, where a set of rational agents works on a joint task. In the … static model, we show that higher incentives (i.e., higher rewards for success) positively affect the success rate and the … agents’ payoffs. This is in contrast to the dynamic model, where higher incentives can lower the success rate and may also …

It is difficult to test the prediction that future career prospects create implicit effort incentives because …

incentives and wage gifts on creativity. We find that tournaments substantially increase creative output, with no evidence for …

incentives and wage gifts on creativity. We find that tournaments substantially increase creative output, with no evidence for …

It is difficult to test the prediction that future career prospects create implicit effort incentives because …

performance - in particular, tournament incentives - induce more stress than schemes that are independent of performance - fixed … self-reported feelings of stress and primary appraisals. We find that tournament incentives induce a stress response … incentives schemes is not a relevant criterion for sorting decisions in our experiment. Finally, we find that cortisol levels are …

. Incentives of advisors and clients may not be aligned, when fees are used by financial institutions to steer advice. We …