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Inequity Aversion in Tournaments
Demougin, Dominique; Fluet, Claude - Centre Interuniversitaire sur le Risque, les Politiques … - 2003
We consider the cost of providing incentives through tournaments when workers are inequity averse and performance … envy depending on the costs of assessing performance. More envious employees are preferred when these costs are high, less …
Persistent link: https://www.econbiz.de/10005696268
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The First-Order Approach when the Cost of Effort is Money
Fagart, Marie-Cécile; Fluet, Claude - Centre Interuniversitaire sur le Risque, les Politiques … - 2012
We provide sufficient conditions for the first-order approach in the principal-agent problem when the agent’s utility has the non-separable form u(y - c(a)) where y is the contractual payoff and c(a) is the money cost of effort. We first consider a decision-maker facing prospects which cost...
Persistent link: https://www.econbiz.de/10010540951