We theoretically and experimentally examine the impact of pay transparency policies and payment schemes on individuals’ effort decisions and their performance. By considering the “no information” policy as a benchmark that only informs each agent of his own performance and pay, we examine...

This paper studies optimal schemes for allocating scarce resources to agents with private demand information and heterogeneous bargaining powers. Through an investigation of a mechanism design model that aims to induce agents to report their demands truthfully, we find the following results....