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 …

We examine how economic incentives affect pro-social behavior through the analysis of a unique dataset with information … incentives in a "standard" way; offering donors economic incentives significantly increases turnout and blood units collected … come to a drive but are ineligible to donate when incentives are offered. Further evidence from a small-scale field …

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. …

results are robust to several specifications, sample definitions, and controls for observable and unobservable heterogeneity …

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 …