Tournament incentives’ schemes have been criticized for inducing excessive risk-taking among financial market participants. In this paper we investigate how relative performance-based incentive schemes and status concerns for higher rank influence portfolio choice in laboratory experiments. We...

Many companies spend substantial resources in order to be viewed as socially responsible. We argue that one reason firms do this is to create a warm glow about the firm and thereby affect employee behavior and improve performance. This proposition is tested with an incomplete contract...

Incentive schemes resulting in tournament competition have been criticized for inducing excessive risk-taking among financial market participants. In this paper we investigate the influence of relative performance-based incentive schemes on risk-taking and portfolio choice. In particular, we...