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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
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
This paper quantifies a tenant-side "split incentives" problem that exists when the largest commercial sector customers … previous split incentives papers, and is robust when exposed to several opportunities to fail. The electricity reduction in …
Persistent link: https://www.econbiz.de/10012031116
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
In a principal-agent model under moral hazard we examine the psychological and social motivations of the agent that influence the incentive compatibility condition (ICC) of the agent. Under “firm culture” firms emphasize that high effort is consistent with its culture. Under “industry-wide...
Persistent link: https://www.econbiz.de/10015071165
an experiment with piece-rate incentives we find that the comparative static and the point predictions on effort …
Persistent link: https://www.econbiz.de/10010518803
incentives. Collective enforcement allows the transparent organization to use strong employment relationships to "cross …
Persistent link: https://www.econbiz.de/10012418628
bargaining, leading to stronger effort incentives and higher output. However, it also reduces incentives for labor market …
Persistent link: https://www.econbiz.de/10003850266
We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … incentives and become superior when there are also fair-minded players. These predictions are strongly supported by the results …
Persistent link: https://www.econbiz.de/10011398105