To boost employees' performance, firms often offer monetary bonuses when production goals are reached. However, the available evidence indicates that the particular level at which a goal is set is critical to the effectiveness of this practice. Goals must be challenging yet achievable. Computing...

This article is the first attempt to study the empirical link between income aspirations and cooperation in a one shot public good game. By combining experimental with survey data, we find evidence that the more frustrated people are with their income, the lower is their propensity to cooperate...

Despite the fact that much research has been devoted to understanding the effect of performance-contingent monetary incentives on individuals' effort provision, little attention has been dedicated toward understanding whether a sequence of changes in the amount of piece rate an individual...