Traditionally, incentives to promote behavioral change are assigned rather than chosen. In this paper, we theoretically … and empirically investigate the alternative approach of letting people choose their own incentives from a menu of … and benefits, we theoretically show that leaving them the choice of incentives can improve both adherence and welfare. We …

Promotions serve two purposes. They ought to provide incentives for employees and to select the best employee for a … misalignment between managers and the firm, these two purposes are in conflict. This is because the worker with the largest private … benefit as a manager has the strongest incentives to work hard to get promoted. This article shows how the interplay of …