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Implementing performance pay requires that workers' output be measured. When measurement costs differ among firms, those with a measurement cost advantage choose to implement performance pay. They attract the best workers, and both the level and variability of compensation are higher at these...
Persistent link: https://www.econbiz.de/10005703403
of incentives and when incentives can have “hidden costs”, i.e., a detrimental effect. We show experimentally that in all …'s behavior. Our finding contributes to the micro-foundation of psychological effects of incentives. …
Persistent link: https://www.econbiz.de/10011252294
This paper studies the impact of incentives on worker self-selection in a controlled laboratory experiment. In a first …
Persistent link: https://www.econbiz.de/10005703774
to investigate the ex ante sorting effect of tournaments. This paper reports results from an experiment analyzing whether …
Persistent link: https://www.econbiz.de/10005763542
experiment that analyzes the influence of other-regarding preferences on sorting and incentives. Experimental evidence shows that … the provision of incentives and their sorting effect. …
Persistent link: https://www.econbiz.de/10005763609
Most studies on the role of incentives on risk attitude report data obtained from within-subject experimental … prospects in a laboratory experiment. Under low stakes, we find the typical risk seeking behavior for small probabilities …
Persistent link: https://www.econbiz.de/10008527318
Whereas economists have made extensive studies of the impact of levels of incentives on behavior, they have paid little … attention to the effects of regularity and frequency of incentives. We contrasted three ways of rewarding participants in a real …-effort experiment in which individuals had to decide when to exit the situation: a continuous reinforcement schedule (all periods paid …
Persistent link: https://www.econbiz.de/10008611511
-exchange experiment, the employer can express respect by giving the employee costly symbolic rewards after observing his level of effort …. This experiment sheds light on the extent to which symbolic rewards are used, how they affect employees’ further effort … extrinsic incentives by the availability of non-monetary incentives. …
Persistent link: https://www.econbiz.de/10008678679
schemes. With it, we study tensions between egalitarianism, equity concerns, self-interest, and the need for incentives. In a … rational responses to incentives, are influenced by egalitarian, equity and strategic considerations. …
Persistent link: https://www.econbiz.de/10008678697
A simple principal agent problem is experimentally investigated in which a principal repeatedly sets a wage and an agent responds by choosing an effort level. The principal's payoff is determined by the agent's effort. In a first setting the principal can only set a fixed wage in each period. In...
Persistent link: https://www.econbiz.de/10005761948