talented workers leads to an escalating reliance on performance pay and other high-powered incentives, thereby shifting effort … incentives downward in order to extract rents. More generally, as declining market frictions lead employers to compete more …, while inequality tends to rise monotonically. Bonus caps and income taxes can help restore balance in agents' incentives and …

workers’ productivity and firm performance. Besides giving more advancement incentives, bigger wage differentials might also …

-agent relationships by improving the trade-off between insurance and incentives in the design of explicit contracts. In dynamic settings …, however, there may be implicit as well as explicit incentives (e.g. managerial career concerns and the ratchet effect in … regulation). We show that the dynamic effects of CPI on implicit incentives can either reinforce or oppose the familiar (static …

allocation and pricing of space and an efficient allocation of incentives across stores. Certain stores generate externalities by …: (i) efficiently price the net externality of each store, and (ii) align the incentives to induce optimal effort by the …

This Paper examines optimal incentives and performance measurement in a setting where an agent has specific knowledge … choice of performance measures and incentives depends on the agent’s knowledge, environmental risk, technological uncertainty …