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the agent's motivation to perform well. Before the agent chooses his performance, the principal in our experiment decides … opportunistically. We find that most principals in our experiment do not restrict the agent's choice set but trust that the agent will … incentives as well as the puzzling incompleteness of many economic contracts. …
Persistent link: https://www.econbiz.de/10005124063
, people who derive benefits from his performance (parent, spouse, friend, teacher, manager, etc.) have incentives to … - as stressed by psychologists - in that they undermine intrinsic motivation. As a result, they may be only weak … motivation, while offers of help may create a dependence. More generally, we identify when the hidden costs of rewards are a myth …
Persistent link: https://www.econbiz.de/10005656299
), material or other explicit incentives (laws) and social sanctions or rewards (norms). It first examines how honor, stigma and … social norms arise from individuals’ behaviors and inferences, and how they interact with material incentives. It then … also what shapes social judgements and moral sentiments. Setting law thus means both imposing material incentives and …
Persistent link: https://www.econbiz.de/10009371470
We study charitable giving within social groups. Exploiting a unique dataset, we establish three key relationships between social group size and fundraising outcomes: (i) a positive relationship between group size and the total number of donations; (ii) a negative relationship between group size...
Persistent link: https://www.econbiz.de/10011084626
intertemporal decisions. The theory has applications in areas as diverse as labour supply, savings and investment, or education and … effort. Self-confidence thus enhances motivation, and this gives a time--inconsistent individual a strong incentive to build …
Persistent link: https://www.econbiz.de/10005136755
or religious precepts, etc.) through which people seek to achieve self-control. Our theory is based on the idea of self …
Persistent link: https://www.econbiz.de/10005136762
We build a theory of prosocial behaviour that combines heterogeneity in individual altruism and greed with concerns for … extrinsic incentives. The model also allows us to identify settings that are conducive to multiple social norms of behaviour … sponsors, including the level and confidentiality or publicity of incentives. Sponsor competition may cause rewards to bid down …
Persistent link: https://www.econbiz.de/10005498047
performance incentives, on behavior of care providers filing applications for providing long-term care services to patients. We … present evidence from a large-scale field experiment in the Dutch market for long-term care. We find that increasing the … degree of control reduces the number of applications and that introducing performance incentives reduces this even further …
Persistent link: https://www.econbiz.de/10011272714
We explore the consequence for taxation and regulation of bonus pay when investors are protected by taxpayers from downside risk. The paper develops a model where workers in financial sector firms make decisions about effort and risk-taking which are influenced by the structure of bonus pay....
Persistent link: https://www.econbiz.de/10009246598
closed form). By modeling the noise before the action in each period, we force the contract to provide sufficient incentives …
Persistent link: https://www.econbiz.de/10008509464