Incentives often distort behavior: they induce agents to exert effort but this effort is not employed optimally. This … paper proposes a theory of incentive design allowing for such distorted behavior. At the heart of the theory is a trade …-off between getting the agent to exert effort and ensuring that this effort is used well. The theory covers various moral …

The career concerns literature predicts that incentives for effort decline as beliefs about ability become more precise …

When politicians are provided with insufficient incentives by the democratic election mechanism, we show that social …

When politicians are provided with insufficient incentives by the democratic election mechanism, we show that social …

reduce the effort costs of a worker, and analyze the optimal combination of motivational effort and monetary incentives. We … conditions under which monetary incentives and motivational effort are substitutes or complements, and show that motivational …

incentives and a relatively high expected total compensation, but the latter does not necessarily hold. Furthermore, since some … incentives and relatively high expected total compensation. …

reduce the effort costs of a worker, and analyze the optimal combination of motivational effort and monetary incentives. We … conditions under which monetary incentives and motivational effort are substitutes or complements, and show that motivational …

We show that contracting in agency with voluntary participation may involve incentives for the agent's abstention …

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 …