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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
In a tedious real effort task, subjects know that their piece rate is either low or ten times higher. When subjects are informed about their piece rate realization, they adapt their performance. One third of subjects nevertheless forego this instrumental information when given the choice - and...
Persistent link: https://www.econbiz.de/10011346303
outcomes, thus ignoring possible repercussions. We present a field experiment in which we consider a phenomenon that we call …
Persistent link: https://www.econbiz.de/10010199693
selection probability induce the monetary incentives in a large-scale Internet treatment. Two laboratory treatments complement … incentives. Our results suggest that cost-effective BRIS consist of high nominal payoffs and a small selection probability. …
Persistent link: https://www.econbiz.de/10011500169
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
rationality can affect effort provision, by shrouding attributes of the incentives. In our setting, complexity leads workers to …
Persistent link: https://www.econbiz.de/10014309731
performance. As a comparison we ran the same experiment (the Candle Problem) with and without incentives for individuals as well …It has been argued that monetary incentives restrain individual creativity and hamper performance in jobs requiring out … of the box thinking. This paper reports from an experiment designed to test if the negative incentive effect is present …
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
prediction in a lab experiment allowing us to cleanly separate the selection effect from other effects of low incentives. Results …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 …
Persistent link: https://www.econbiz.de/10012599052