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Can higher bonuses lead to less effort? Incentive reversal in teams
Klor, Esteban F.; Kube, Sebastian; Winter, Eyal; … - 2011
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/10010278589
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Differentiation and performance: An empirical investigation on the incentive effects of bonus plans
Kampkötter, Patrick; Sliwka, Dirk - 2011
evaluating performance. The purpose of this paper is to study the incentive effects of this behavior empirically. We first show … differentiation has a substantial positive effect on performance. This effect is larger on higher hierarchical levels. But …
Persistent link: https://www.econbiz.de/10010282509
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Incentives in the public sector: Evidence from a government agency
Burgess, Simon; Propper, Carol; Ratto, Marisa; Tominey, Emma - 2012
This paper addresses a lack of evidence on the impact of performance pay in the public sector by evaluating a pilot … targets, measured with varying degrees of precision. We use data from the agency's performance management system and personnel … records plus matched labour market data. We focus on three main issues: whether performance pay matters for public service …
Persistent link: https://www.econbiz.de/10010287691
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Incentives in the Public Sector: Evidence from a Government Agency
Burgess, Simon; Propper, Carol; Ratto, Marisa; Tominey, Emma - Institute for the Study of Labor (IZA) - 2012
This paper addresses a lack of evidence on the impact of performance pay in the public sector by evaluating a pilot … targets, measured with varying degrees of precision. We use data from the agency's performance management system and personnel … records plus matched labour market data. We focus on three main issues: whether performance pay matters for public service …
Persistent link: https://www.econbiz.de/10010559801
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The Cost Impact of Spam Filters: Measuring the Effect of Information System Technologies in Organizations
Caliendo, Marco; Clement, Michel; Papies, Dominik; … - Institute for the Study of Labor (IZA) - 2008
More than 70% of global e-mail traffic consists of unsolicited and commercial direct marketing, also known as spam. Dealing with spam incurs high costs for organizations, prompting efforts to try to reduce spam-related costs by installing spam filters. Using modern econometric methods to reduce...
Persistent link: https://www.econbiz.de/10005703255
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Management-employee relations, firm size and job satisfaction
Tansel, Aysit; Gazioglu, Saziye - 2013
This paper investigates the job satisfaction in relation to managerial attitudes towards employees and firm size using the linked employer-employee survey results in Britain. We first investigate the management-employee relationships and the firm size using maximum likelihood probit estimation....
Persistent link: https://www.econbiz.de/10010293118
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Groupthink: Collective delusions in organizations and markets
Bénabou, Roland - 2013
This paper investigates collective denial and willful blindness in groups, organizations and markets. Agents with anticipatory preferences, linked through an interaction structure, choose how to interpret and recall public signals about future prospects. Wishful thinking (denial of bad news) is...
Persistent link: https://www.econbiz.de/10010293122
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Authority and incentives in organizations
Kräkel, Matthias - 2013
The paper analyzes how the choice of organizational structure leads to the best compromise between controlling behavior based on authority rights and minimizing costs for implementing high efforts. Concentrated delegation and hierarchical delegation turn out to be never an optimal compromise. If...
Persistent link: https://www.econbiz.de/10010293168
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Third-Party vs. Second-Party Control: Disentangling the Role of Autonomy and Reciprocity
Burdín, Gabriel; Halliday, Simon; Landini, Fabio - 2015
This paper studies the role of autonomy and reciprocity in explaining control averse responses in principal-agents interactions. While most of the social psychology literature emphasizes the role of autonomy, recent economic research has provided an alternative explanation based on reciprocity....
Persistent link: https://www.econbiz.de/10011307467
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Expanding Export Variety: The Role of Institutional Reforms in Developing Countries
Sheng, Liugang; Yang, Dennis Tao - 2013
This paper presents theory and evidence showing that institutional reforms in developing countries can effectively expand their product varieties in export. Our model demonstrates that relaxing foreign ownership controls and improving contract enforcement can induce multinational companies to...
Persistent link: https://www.econbiz.de/10010328962