"), material or other explicit incentives ("laws") and social sanctions or rewards ("norms"). It first examines how honor, stigma … and social norms arise from individuals' behaviors and inferences, and how they interact with material incentives. It then … incentives and sending a message about society's values, and hence about the norms that different behaviors are likely to …

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 …

data. Factors emphasized in the economic theory of agency, notably risk aversion, also shape pay policies but these factors …

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. …

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 …

. High-powered incentives may crowd out motivation as pessimism about the norm is conveyed. But by choosing fixed wages or …