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Task difficulty, performance measure characteristics, and the trade-off between insurance and well-allocated effort
Schnedler, Wendelin - 2006
When designing incentives for a manager, the trade-off between insurance and a good allocation of effort across various …
Persistent link: https://www.econbiz.de/10010268002
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Performance pay, sorting, and outsourcing
Henneberger, Fred; Sousa-Poza, Alfonso; Ziegler, Alexandre - 2007
Implementing performance pay requires that workers' output be measured. When measurement costs differ among firms, those with a measurement cost advantage choose to implement performance pay. They attract the best workers, and both the level and variability of compensation are higher at these...
Persistent link: https://www.econbiz.de/10010268459
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The role of salience in performance schemes: Evidence from a field experiment
Englmaier, Florian; Roider, Andreas; Sunde, Uwe - 2012
tasks. We analyze the effects of the salience of incentives in a team production setting where the principal has an interest … incentive system without changing the incentive system. The results indicate that salience of incentives itself is statistically … and economically important for performance. We find that higher salience of incentives for quantity increases quantity …
Persistent link: https://www.econbiz.de/10010282221
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Distrust : The Hidden Cost of Control
Falk, Armin; Kosfeld, Michael - 2004
incentives as well as the puzzling incompleteness of many economic contracts. …
Persistent link: https://www.econbiz.de/10010261958
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An Experimental Test of Career Concerns
Koch, Alexander K.; Morgenstern, Albrecht; Raab, Philippe - 2004
Holmström?s (1982/99) career concerns model has become an important workhorse for the analysis of agency issues in many fields. The underlying signal jamming argument requires players to use information in a Bayesian way – which may or may not reasonably approximate real-life decision makers?...
Persistent link: https://www.econbiz.de/10010262147
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On the Notion of Responsibility in Organizations
Sliwka, Dirk - 2004
subordinate then is affected by the outcome of the task and he therefore has strong incentives to contribute to its success. There …
Persistent link: https://www.econbiz.de/10010262163
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Performance pay and risk aversion
Grund, Christian; Sliwka, Dirk - 2006
A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in environments with little uncertainty and for agents with low degrees of risk aversion. There is an ongoing debate in the literature about the first trade-off. Due to lack of...
Persistent link: https://www.econbiz.de/10010267296
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You don't always get what you pay for
Schnedler, Wendelin - 2007
Consider a principal-agent relationship in which more effort by the agent raises the likelihood of success. Does rewarding success, i.e., paying a bonus, increase effort in this case? I find that bonuses have not only an incentive but also an income effect. Overall, bonuses paid for success may...
Persistent link: https://www.econbiz.de/10010268396
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Team governance: empowerment or hierarchical control
Friebel, Guido; Schnedler, Wendelin - 2007
We investigate a team setting in which workers have different degrees of commitment to the outcome of their work. We show that if there are complementarities in production and if the team manager has some information about team members, interventions that the manager undertakes in order to...
Persistent link: https://www.econbiz.de/10010268432
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Performance Pay and Risk Aversion
Grund, Christian; Sliwka, Dirk - Institute for the Study of Labor (IZA) - 2006
A main prediction of agency theory is the well known risk-incentive trade-off. Incentive contracts should be found in environments with little uncertainty and for agents with low degrees of risk aversion. There is an ongoing debate in the literature about the first trade-off. Due to lack of...
Persistent link: https://www.econbiz.de/10005822413