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Persistent link: https://www.econbiz.de/10011528614
risk-inducing. Using a novel, real-effort task experiment in the laboratory, we find that the relationship between … incentives and risk-taking is more nuanced and depends critically on the availability of information about peers’ strategies and … outcomes. Indeed, we find that when no peer information is available, relative rewards schemes are associated with …
Persistent link: https://www.econbiz.de/10013224108
We conduct a field experiment in a Dutch retail chain of 122 stores to study the interaction between team incentives …
Persistent link: https://www.econbiz.de/10012253632
Measuring risk preferences in the field is critical for policy, however, it can be costly. For instance, the commonly used measure of Holt and Laury (2002) relies on a dozen lottery choices and payments which makes it time-consuming and costly. We propose a short version of the Holt and Laury...
Persistent link: https://www.econbiz.de/10012823766
When working together, people engage in non-contractual and informal interactions that constitute the sociology of the group. We use behavioral models and a unique survey of medical groups to analyze how group sociology influences physician incentive pay and behavior. We conclude that informal...
Persistent link: https://www.econbiz.de/10003287624
Persistent link: https://www.econbiz.de/10009678182
Publicly traded firms in the U.S. typically determine C.E.O. compensation by benchmarking the pay of their C.E.O.s against the pay of C.E.O.s in “peer” firms. The naming of particular peer companies by individual firms constitutes a supra-firm relational structure (network) in which an...
Persistent link: https://www.econbiz.de/10013108899
increased wage comparisons within firms with geographically-dispersed managers — firms with the greatest information frictions …
Persistent link: https://www.econbiz.de/10013082812
We document that firms whose compensation peers experience weak say on pay votes reduce CEO compensation following those votes. Reductions reflect proxy adviser concerns about peers' compensation contracts and are stronger when CEOs receive excess compensation, when they compete more closely...
Persistent link: https://www.econbiz.de/10012902356
This paper incorporates the sociological concept of group norms' into an economic analysis of pay systems. We use a behavioral microeconomic model and a unique survey of medical groups to examine the theoretical and empirical relationship between group norms and incentive pay. Our findings...
Persistent link: https://www.econbiz.de/10013234345