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Many organizations suffer poor performance because its members fail to coordinate on efficient patterns of behavior. In previous research, we have shown that financial incentives can be used to find a way out of such performance traps. Here we examine the sensitivity of this result to the...
Persistent link: https://www.econbiz.de/10010547425
, managers have two instruments at their disposal, increasing employees' financial incentives to coordinate and communication … with employees. We find that communication is a more effective tool than incentive changes for leading organizations out of … performance traps. Examining the content of managers' communication, the most effective messages specifically request a high …
Persistent link: https://www.econbiz.de/10010547458
Many organizations suffer poor performance because individuals within the organization fail to coordinate on efficient patterns of behavior. Using controlled laboratory experiments, we study how financial incentives can be used to find a way out of such performance traps. Our experiments are set...
Persistent link: https://www.econbiz.de/10010547461
.e., a turnaround. We compare communication from leaders to incentive increases and also compare the effectiveness of … randomly selected and elected leaders. While all interventions yield shifts to more efficient equilibria, communication from …
Persistent link: https://www.econbiz.de/10010851357
-way free form communication message sent by the leader to the followers strongly revives cooperation. We find evidence that … repeated free form communication by the leader further strengthens the reviving effect on cooperation. Combining the two … previous interventions does not outperform the pure effect of communication. Our content analysis reveals that leader …
Persistent link: https://www.econbiz.de/10011261233
consensus. Our 2-by-2 design also controls for communication effects. In our data, communication makes vertical firms more …
Persistent link: https://www.econbiz.de/10010547180
We study the effects of competition in a context in which people's actions can not be contractually fixed. We find that in such an environment the very presence of competition does neither increase efficiency nor does it yield any payoff gains for the short side of the market. We also find that...
Persistent link: https://www.econbiz.de/10010547347
We experimentally investigate in the laboratory two prominent mechanisms that are employed in school choice programs to assign students to public schools. We study how individual behavior is influenced by preference intensities and risk aversion. Our main results show that (a) the GaleShapley...
Persistent link: https://www.econbiz.de/10011132915
Do the contests with the largest prizes attract the most able contestants? Do contestants avoid competition? In this paper we show that the distribution of abilities plays a crucial role in determining contest choice. Positive sorting exist only when the proportion of high ability contestants is...
Persistent link: https://www.econbiz.de/10010851331
In this paper we use data from industrial plants to investigate if seniority-based pay is used as a motivational device for production workers. Alternatively, seniority-based pay could simply be a wage setting rule not necessarily related to the provision of incentives. Unlike previous papers,...
Persistent link: https://www.econbiz.de/10010851485