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work, agents usually make their effort choice in response to competition and monetary incentives. At the same time, they … also allow for variations in incentives in one work period, in order to analyze spillover effects to the work periods … experimental data. A short-term increase in incentives in one period should lead to higher effort in that period, and, due to …
Persistent link: https://www.econbiz.de/10011985278
We model deferred compensation as a share of an uncertain futureprofit granted by a financially constrained employer to her employeein mutual agreement. Deferred compensation serves as a retentionmechanism, helping the employer to avoid bankruptcy. The optimalcombination of cash and deferred...
Persistent link: https://www.econbiz.de/10005866781
A growing empirical literature attributes much of the productivity advantages of large, "superstar" firms to their adoption of best practice management techniques that allow them to better identify and use talented workers. The reasons for the incomplete adoption of these "structured management...
Persistent link: https://www.econbiz.de/10014467815
This paper experimentally investigates the impact of different pay and relative performance information policies on employee effort. We explore three information policies: No feedback about relative performance, feedback given halfway through the production period, and continuously updated...
Persistent link: https://www.econbiz.de/10005860221
Although stock options are commonly observed in chief executive o±cer (CEO) compensation contracts, there is theoretical controversy about whether stock options are part of the optimal contract. Using a sample of Fortune 500 companies, we solve an agency model calibrated to the company-specific...
Persistent link: https://www.econbiz.de/10010266313
Subjective evaluations are widely used, but call for different contracts from classical moral-hazard settings. Previous literature shows that contracts require payments to third parties. I show that the (implicit) assumption of deterministic contracts makes payments to third parties necessary....
Persistent link: https://www.econbiz.de/10014467777
incentives influence performance in these tasks. In a series of field experiments involving more than 5,000 participants, we … investigate how incentives alter behavior in teams working on such a task. We document a positive effect of bonus incentives on … those seen with bonus incentives, rendering it as a likely mediator of incentive effects. …
Persistent link: https://www.econbiz.de/10014467847
Tournaments are often used to improve performance in innovation contexts. Tournaments provide monetary incentives but … 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 the top performers. Additional monetary incentives improve all …
Persistent link: https://www.econbiz.de/10014467858
Despite the prevalence of non-routine analytical team tasks in modern economies, little is known about how incentives … bonus incentives on the probability of completion of such a task. Bonus incentives increase performance due to the reward … minor role. Incentives improve performance also in an additional sample of presumably less motivated workers. However …
Persistent link: https://www.econbiz.de/10011932936
We conduct a field experiment where we vary both the presence of a gift-exchange wage and the effect of the worker's effort on the manager's payoff. Results indicate a strong complementarity between the initial wage-gift and the agent's ability to "repay the gift". We control for differences in...
Persistent link: https://www.econbiz.de/10012141884