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Testing the Theory of Multitasking : Evidence from a Natural Field Experiment in Chinese Factories

Hong, Fuhai - 2013

tasks that produce unobservable outputs as they seek the salient rewards to observable outputs. Since the theory related to … contexts remain largely unknown. This study provides empirical insights quantifying such effects using a field experiment in …

Persistent link: https://www.econbiz.de/10013072582

On the Role of Group Size in Tournaments : Theory and Evidence from Lab and Field Experiments

List, John A. - 2014

test of the theory implements a laboratory experiment, where important features of the theory can be exogenously imposed …. We begin with a theoretical exploration of optimal contest design, focusing on the number of competitors. Our theory …. We complement our lab experiment with a field experiment, where we rely on biological models complemented by economic …

Persistent link: https://www.econbiz.de/10013056205

Rank-Order Tournaments as Optimum Labor Contracts

Lazear, Edward P.; Rosen, Sherwin - 2021

This paper analyzes compensation schemes which pay according to an individual's ordinal rank in an organization rather than his output level. When workers are risk neutral, it is shown that wages based upon rank induce the same efficient allocation of resources as an incentive reward scheme...

Persistent link: https://www.econbiz.de/10013248434

A Comparison of Tournaments and Contracts

Green, Jerry; Stokey, Nancy L. - 2021

Tournaments, reward structures based on rank order, are compared with individual contracts in a model with one risk-neutral principal and many risk-averse agents. Each agents' output is a stochastic function of his effort level plus an additive shock term that is common to all the agents. The...

Persistent link: https://www.econbiz.de/10013232756

Executive Compensation : A Survey of Theory and Evidence

Edmans, Alex - 2017

This paper reviews the theoretical and empirical literature on executive compensation. We start by presenting data on the level of CEO and other top executive pay over time and across firms, the changing composition of pay; and the strength of executive incentives. We compare pay in U.S. public...

Persistent link: https://www.econbiz.de/10012951861

Teacher Incentives

Glewwe, Paul - 2015

Advocates of teacher incentive programs argue that they can strengthen weak incentives, while opponents argue they lead to teaching to the test.' We find evidence that existing teacher incentives in Kenya are indeed weak, with teachers absent 20% of the time. We then report on a randomized...

Persistent link: https://www.econbiz.de/10013038473

The Generalized Informativeness Principle

Chaigneau, Pierre - 2014

This paper shows that the informativeness principle, as originally formulated by Holmstrom (1979), does not hold if the first-order approach is invalid. We introduce a "generalized informativeness principle" that takes into account non-local incentive constraints and holds generically, even...

Persistent link: https://www.econbiz.de/10013040535

Incentives in Basic Research

Lazear, Edward P. - 2021

Individuals involved in basic research, like other workers, respond to incentives. Funding agencies provide implicit incentives when they specify the rules by which awards are made. The following analysis is an exercise in understanding incentives at an applied level. Specific rules are examined...

Persistent link: https://www.econbiz.de/10013227506

Optimal Incentive Contracts in the Presence of Career Concerns : Theory and Evidence

Gibbons, Robert; Murphy, Kevin James - 2021

This paper studies career concerns -- concerns about the effects of current performance on future compensation -- and describes how optimal incentive contracts are affected when career concerns are taken into account. Career concerns arise frequently: they occur whenever the market uses a...

Persistent link: https://www.econbiz.de/10013228250

The Tenuous Tradeoff between Risk and Incentives

Prendergast, Canice - 2021

Empirical work testing for a negative tradeoff between risk and incentives, a cornerstone of agency theory, has not had …

Persistent link: https://www.econbiz.de/10013228971