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the presence of tournament incentives, agents react reciprocally to higher wages, which mitigates the sabotage problem …Although relative performance schemes are pervasive in organizations reliable empirical data on induced sabotage … behavior is almost non-existent. We study sabotage in tournaments in a controlled laboratory experiment and are able to confirm …
Persistent link: https://www.econbiz.de/10004980267
In many environments, tournaments can elicit more effort from workers, except perhaps when workers can sabotage each … the incentive effect of tournaments is thin. There is even less evidence on the impact of sabotage because real world acts … of sabotage are often subtle manifestations of subjective peer evaluation or "office politics." We discuss a real effort …
Persistent link: https://www.econbiz.de/10005703722
Conventional wisdom suggests that an increase in monetary incentives should induce agents to exert higher effort. In this paper, however, we demonstrate that this may not hold in team settings. In the context of sequential team production with positive externalities between agents, incentive...
Persistent link: https://www.econbiz.de/10008839289
A growing literature stresses the importance of reciprocity, especially for employment relations. In this paper, we study the interaction of different payment modes with reciprocity. In particular, we analyze how equal wages affect performance and efficiency in an environment characterized by...
Persistent link: https://www.econbiz.de/10005761926
for many tournament and player characteristics. Further results indicate that uneven contests lead favourites to win more …
Persistent link: https://www.econbiz.de/10005566466
The importance of fair and equal treatment of workers is at the heart of the debate in organizational management. In this regard, we study how reward mechanisms and production technologies affect effort provision in teams. Our experimental results demonstrate that unequal rewards can potentially...
Persistent link: https://www.econbiz.de/10005566518
This paper tests two hypotheses from the theory of elimination tournaments: (i) that uneven tournaments, where the contestants are ex ante heterogeneous, entail lower effort exertion; this is a prediction from agency theory that has not been tested empirically before; and (ii) whether incentives...
Persistent link: https://www.econbiz.de/10005233835
This study uses panel data describing about 6,500 employees in a large international company to study the incentive effects of performance related pay. The company uses two performance related remuneration mechanisms. One is an individual "surprise" bonus payment. The other is a more structured...
Persistent link: https://www.econbiz.de/10005703318
We develop a model of manager-employee relationships where employees care more for their manager when they are more convinced that their manager cares for them. Managers can signal their altruistic feelings towards their employees in two ways: by offering a generous wage and by giving attention....
Persistent link: https://www.econbiz.de/10005822723
Tournament incentive schemes offer payments dependent on relative performance and thereby are intended to motivate … competitors in order to improve the own relative position. In the present study we investigate whether this sabotage problem is … mitigated in a repeated interaction between the agents and the principal. As sabotage can hardly be observed in real …
Persistent link: https://www.econbiz.de/10005566800