This paper reports the results of an experiment that examines how incentive-based compensation contracts compare to flat-wage compensation contracts in motivating individual learning and performance. I use a multiperiod cognitive task where the accounting system generates information (feedback)...

In this paper, we develop sixteen testable propositions about variables that moderate a positive relation between monetary incentives and task performance. The propositions are derived from a comprehensive review of the literatures in accounting, economics, finance, management, psychology, and...