Renneboog, Luc; ter Horst, Jenke; Pikulina, E.S.; … - Tilburg University, Center for Economic Research - 2013
Abstract: Little is known about how different bonus schemes affect traders’ propensity to trade and which bonus schemes … improve traders’ performance. We study the effects of linear versus threshold (convex) bonus schemes on traders’ behavior … traders trade more intensively (the number of transactions augments) under the threshold than under the linear bonus scheme …