countervailing incentives which create a trade-off between the amount of transmitted information and rent extraction. Our theory …

utility which is type-dependent and thereby generates countervailing incentives, which can make a bias toward either project …

either start with low financial incentives for coordination, which typically leads to coordination failure, and then are … switched to higher incentives or start with high incentives, which typically yield effective coordination, and are switched to … previous research, we have shown that financial incentives can be used to find a way out of such performance traps. Here we …

, managers have two instruments at their disposal, increasing employees' financial incentives to coordinate and communication … managerial intervention subjects invariably slip into coordination failure. To overcome a history of coordination failure … with employees. We find that communication is a more effective tool than incentive changes for leading organizations out of …

patterns of behavior. Using controlled laboratory experiments, we study how financial incentives can be used to find a way out … phase, the benefits of coordination are low relative to the cost of increased effort. Play in this initial phase typically … explores the effects of varying the financial incentives to coordinate at a higher effort level. We find that an increase in …

Regulations that constrain firms’ externalities in one dimension can distort incentives and worsen externalities in …