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of workers faced with progressive taxation under tournaments and piece rates. Because of the difficulty identifying any …
Persistent link: https://www.econbiz.de/10010394004
When exogenously imposed, rank-order tournaments have incentive properties but their overall efficiency is reduced by a … to investigate the ex ante sorting effect of tournaments. This paper reports results from an experiment analyzing whether … allowing subjects to self-select into different payment schemes helps in reducing the variability of performance in tournaments …
Persistent link: https://www.econbiz.de/10003283430
behavior is almost non-existent. We study sabotage in tournaments in a controlled laboratory experiment and are able to confirm …
Persistent link: https://www.econbiz.de/10003859419
A real effort experiment is investigated in which supervisors have to rate the performance of individual workers who in turn receive a bonus payment based on these ratings. We compare a baseline treatment in which supervisors were not restricted in their rating behavior to a forced distribution...
Persistent link: https://www.econbiz.de/10003981608
We use an online real-effort experiment to investigate how bonus-based pay and worker productivity interact with workplace cheating. Firms often use bonus-based compensation plans, such as group bonuses and firm-wide profit sharing, that induce considerable uncertainty in how much workers are...
Persistent link: https://www.econbiz.de/10009569591
Conventional wisdom suggests that an increase in monetary incentives should induce agents to exert higher effort. In this paper, however, we demonstrate that this may not hold in team settings. In the context of sequential team production with positive externalities between agents, incentive...
Persistent link: https://www.econbiz.de/10009230143
Most firms rely on subjective evaluations by supervisors to assess their employees' performance. This article discusses the implementation of such appraisal processes, exploring the use of multiple research methods such as the analysis of personnel records, survey data, and lab and field...
Persistent link: https://www.econbiz.de/10011308995
We utilize a laboratory experiment to compare effort provision under optimal tournament contracts with different distributions of prizes which motivate agents to compete to be first, avoid being last, or both. We find that the combined tournament contract incorporating both incentives at the top...
Persistent link: https://www.econbiz.de/10011337036
Empirical studies of the principal-agent relationship find that extrinsic incentives work in many instances, linking rewards to performance increases effort, but that they can also backfire, reducing effort. Intrinsic motivation, the internal drive to work to master a skill or to improve one's...
Persistent link: https://www.econbiz.de/10009771729
We present results from a field experiment designed to measure the importance of managerial commitment to a contract within a firm that pays its workers piece rates. In the tree planting industry the piece rate paid to workers is determined as a function of the difficulty of the terrain to be...
Persistent link: https://www.econbiz.de/10010359307