performance of the treatment stores. As predicted by theory, treatment stores that lag far behind do not respond to the incentives …

Empirical studies of the principal-agent relationship find that extrinsic incentives work in many instances, linking … drive to work to master a skill or to improve one's self image, is thought to be the key to whether incentives work or not …. If the incentives crowd-out intrinsic motivation, and the effect is large enough, the net motivational effect on effort …

performance of the treatment stores. As predicted by theory, we find that treatment stores that lag far behind do not respond to … the incentives, while the responsiveness of treatment stores close to winning a bonus increases in relative performance …

agents with incentives to cut marginal costs prior to choosing output. We stress that synergies come at a cost which possibly … leads to a countervailing incentive effect: The merged firm's principal may be induced to stifle managerial incentives in …