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

Promotion tournaments play an important role for the provision of incentives in firms. In this paper, we extend …

This paper studies the impact of incentives on worker self-selection in a controlled laboratory experiment. In a first …

This paper studies the interplay between economic incentives and social norms in firms. We introduce a general … also show how social norms can induce multiplicity of equilibria and how steeper economic incentives can reduce effort. …

Conventional wisdom suggests that an increase in monetary incentives should induce agents to exert higher effort. In … with positive externalities between agents, incentive reversal might occur: an increase in monetary incentives (either …

During the last two decades economists have made much progress in understanding incentives, contracts and organisations … effects of incentives. Economists may fail to understand the levels and the changes in behaviour if they neglect motives like … the desire to reciprocate or the desire to avoid social disapproval. We show that monetary incentives may backfire and …

scheme of incentives in a major government agency. The incentive scheme was based on teams and covered quantity and quality … show that the use of performance pay had no impact at the mean, but that there was significant heterogeneity of response …. This heterogeneity was patterned as one would expect from a free rider versus peer monitoring perspective. We found that …