Showing 1 - 10 of 2,170
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
, using a sample of managers and employees from a large company. We exogenously vary whether managers are informed about … matched to informed managers learn that the manager could base their incentive choice on cooperation levels. We find no … information. The absence of the signaling effect seems related to the perception of managers’ intentions, a mitigating but …
Persistent link: https://www.econbiz.de/10014259692
We study the relationship between outside options and workers’ motivation to exert effort. We evaluate changes in …
Persistent link: https://www.econbiz.de/10014345957
). Agents differ in their motivation to exert social effort. Our model predicts that lowering incentives for selfish effort in …
Persistent link: https://www.econbiz.de/10013217557
This paper investigates whether limited liability and moral hazard affect risk-taking through motivated beliefs. On the one hand, limited liability pushes investors towards taking excessive risks. On the other, such excesses make it hard for investors to maintain a positive self-image when moral...
Persistent link: https://www.econbiz.de/10013310769
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
We offer a new explanation for why taxes have become less progressive in many countries in parallel with an increase in income inequality. When performance-based compensation differentials are needed to incentivize effort, redistribution through progressive income taxes becomes less precisely...
Persistent link: https://www.econbiz.de/10012827110
Why does individual performance pay seem to prevail in human capital intensive industries? We present a model that may explain this. In a repeated game model of relational contracting, we analyze the conditions for implementing peer dependent incentive regimes when agents possess indispensable...
Persistent link: https://www.econbiz.de/10012778199
Many societies report an increasingly divergent development of managers’ salaries compared to that of their workforce …. Moreover, there is often a lack in diversity amongst managerial boards. We investigate the role of managers’ gender and … incentive scheme on wages chosen for workers by conducting two experimental studies. The data reveal male managers respond in …
Persistent link: https://www.econbiz.de/10013291321
The effects of performance pay in routine, easy to measure tasks are well-documented, but they are much less understood in knowledge creation. This paper studies the effects of explicit and implicit, career concerns incentives common in knowledge work in a multitasking model, and estimates their...
Persistent link: https://www.econbiz.de/10014264447