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his employer. This paper uses a principal-agent model to study optimal incentive contracts for envious workers under …, increases optimal incentive pay. Moreover, envy can make profitsharing optimal, even when the worker’s effort is fully … awarded stock options, why incentive pay is usually lower in non-profit organizations, and higher in larger firms. Envy may …
Persistent link: https://www.econbiz.de/10005765867
We conduct a field experiment where we vary both the presence of a gift exchange wage and the effect of the worker …
Persistent link: https://www.econbiz.de/10009421689
worker to “repay the gift” to the employer. To test this hypothesis, we conduct a real effort laboratory experiment where we …
Persistent link: https://www.econbiz.de/10008533996
candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …
Persistent link: https://www.econbiz.de/10005051581
We present a model in which a motivator can take costly actions - or what we call motivational effort - in order to reduce the effort costs of a worker, and analyze the optimal combination of motivational effort and monetary incentives. We distinguish two cases. First, the firm owner chooses the...
Persistent link: https://www.econbiz.de/10010877648
We present results from a field experiment designed to measure the importance of managerial commitment to a contract … as a function of the difficulty of the terrain to be planted. During the experiment, workers began planting a terrain at …
Persistent link: https://www.econbiz.de/10010877743
We conduct a field experiment in a naturally occurring labor environment and track whether the performance of workers …
Persistent link: https://www.econbiz.de/10010877759
This paper studies how social relationships between managers and employees affect relational incentive contracts. To …
Persistent link: https://www.econbiz.de/10010877789
Empirically, compensation systems generate substantial effort despite weak monetary incentives. We consider reciprocal motivations as a source of incentives. We solve for the optimal contract in the basic principal-agent problem and show that reciprocal motivations and explicit performance-based...
Persistent link: https://www.econbiz.de/10005766075
Behavioral economics documents the importance of status and self-image concerns in the workplace, but is largely silent about how to instrumentalize them to induce effort. Awards - widespread in the corporate sector and elsewhere - are motivators that derive their value from such social...
Persistent link: https://www.econbiz.de/10004979427