Jean-Jacques Laffont made numerous contributions to the study of the relative efficiency of organizations and institutions responsible for developing and implementing public policy reforms. In this endeavour, he continuously and repeatedly showed very high levels of determination and care to...

In general, incentive pay is not desirable for two main reasons: it puts the worker or employee at risk of fluctuations in his/her wages and it is costly to run. Incentive pay may be explained and justified by four phenomena, which may have important effects on the net benefits of an...