Showing 1 - 10 of 2,426
We investigate overlapping contests in multi-divisional organizations in which an individual's effort simultaneously determines the outcome of several contests on different hierarchical levels. We show that individuals in smaller units are advantaged in the grand (organization-wide) contest for...
Persistent link: https://www.econbiz.de/10012845683
also render teams’ identity and social-image concerns salient. We study the effects of tournaments on team performance in a …,700 participants), we vary the salience of team identity, social-image concerns, and whether teams face monetary incentives. Increased … salience of team identity does not improve performance. Social-image motivates mainly the top-performing teams. Additional …
Persistent link: https://www.econbiz.de/10013219059
can hold-up, the lower is the implementable degree of peer dependent incentives. In a setting with team effects … complementary tasks and peer pressure, respectively we show that while team-based incentives are optimal if agents are dispensable …, it may be costly, and in fact suboptimal, to provide team incentives once the agents become indispensable …
Persistent link: https://www.econbiz.de/10012778199
Before embarking on a project, a principal must often rely on an agent to learn about its profitability. We model this learning as a two-armed bandit problem and highlight the interaction between learning (experimentation) and production. We derive the optimal contract for both experimentation...
Persistent link: https://www.econbiz.de/10012892041
can hold-up, the lower is the implementable degree of peer dependent incentives. In a setting with team effects … - complementary tasks and peer pressure, respectively - we show that while team-based incentives are optimal if agents are dispensable …, it may be costly, and in fact suboptimal, to provide team incentives once the agents become indispensable. …
Persistent link: https://www.econbiz.de/10010264248
Empirically, compensation systems generate substantial effort despite weak monetary incentives. We consider reciprocal motivations as a source of incentives. We solve for the optimal contract in the basic principal-agent problem and show that reciprocal motivations and explicit performance-based...
Persistent link: https://www.econbiz.de/10010264451
How do parties motivate candidates to exert effort in closed-list elections? If each candidate's primary goal is winning a seat, then those in safe and hopeless list positions have weak incentives to campaign. We present a model in which (i) candidates care about both legislative seats and the...
Persistent link: https://www.econbiz.de/10012830995
In many markets supply contracts include a series of small, regular payments made by consumers and a single, large bonus that consumers receive at some point during the contractual period. But, if for instance its production costs exceed its value to consumers, such a bonus creates...
Persistent link: https://www.econbiz.de/10012890631
one team increases social good production by selectively attracting and coordinating motivated agents. We test this … show that social good production more than doubles in the low-incentive team, but only if self-selection is possible. Our …
Persistent link: https://www.econbiz.de/10013217557
Risk-neutral individuals take more risky decisions when they have limited liability. Risk-neutral managers may not when acting as agents under contract and taking costly actions to acquire information before taking decisions. Limited liability makes it optimal to increase the reward for outcomes...
Persistent link: https://www.econbiz.de/10010275809