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 …

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 …

Using data from large-scale establishment surveys in Britain and France, we show that incentive pay for non-managers is … France, which facilitate joint learning about its development and operation; and government fiscal incentives for profit …