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We analyze a repeated principal-agent setting in which the principal cares about the agent's verifiable effort as well as an extra profit that can be generated only if the agent is talented. The agent is overconfident about his talent and updates beliefs using Bayes' rule. An exploitation...
Persistent link: https://www.econbiz.de/10014292070
Who participates in transactions when information about the consequences must be learned? We show theoretically that decision makers for whom acquiring and processing information is more costly respond more strongly to changes in incentive payments for participating and decide to participate...
Persistent link: https://www.econbiz.de/10011863553
It has been argued that monetary incentives restrain individual creativity and hamper performance in jobs requiring out … also when individuals work together to solve such problems. We do not find a negative impact of incentives on group … performance. As a comparison we ran the same experiment (the Candle Problem) with and without incentives for individuals as well …
Persistent link: https://www.econbiz.de/10009786022
incentives to implement such a trigger? We construct a theoretical model of a bank that is financed with debt and equity, and a …. However, we show that the board may implement a contract with insufficient incentives to communicate a warning, as refinancing …
Persistent link: https://www.econbiz.de/10010467356
In this paper, foreign aid transfers can distort individual incentives, and hence hurt growth, by encouraging rent …
Persistent link: https://www.econbiz.de/10011402546
We study, theoretically and empirically, the effects of incentives on the self-selection and coordination of motivated …). Agents differ in their motivation to exert social effort. Our model predicts that lowering incentives for selfish effort in … prediction in a lab experiment allowing us to cleanly separate the selection effect from other effects of low incentives. Results …
Persistent link: https://www.econbiz.de/10012599052
Much of economics assumes that higher incentives increase participation in a transaction only because they exceed more … costly, higher incentives also change reservation prices to further increase participation. A higher incentive makes people …. Hence, incentives change not only what people choose, but also what they believe their choices entail. This result informs …
Persistent link: https://www.econbiz.de/10011588031
incentives - motivate a worker by adopting leadership styles that differ in their non-monetary consequences for the worker's well …
Persistent link: https://www.econbiz.de/10012110227
, an additionally provided monthly application decreases the length of spells by 4%. In line with theory, we further find …
Persistent link: https://www.econbiz.de/10011892543
Persistent link: https://www.econbiz.de/10003712514