actually pay the announced bonus. This offers a new explanation for why explicit and implicit incentives are substitutes rather …

During the last two decades economists have made much progress in understanding incentives, contracts and organisations … effects of incentives. Economists may fail to understand the levels and the changes in behaviour if they neglect motives like … the desire to reciprocate or the desire to avoid social disapproval. We show that monetary incentives may backfire and …

In this paper we show that subtle forms of deceit undermine the effectiveness of incentives. We design an experiment in … level that prevails in the absence of any feedback. Thus, both no feedback and truthful feedback are better for incentives …

relational incentives are a powerful causal determinant for the existence and performance of credit markets. In fact, in the … incentives and exacerbates another moral hazard problem in credit markets the choice of inefficient high-risk projects. -- Credit …

We show that concerns for fairness may have dramatic consequences for the optimal provision of incentives in a moral … incentives and become superior when there are also fair-minded players. These predictions are strongly supported by the results …

provide powerful incentives and are superior to explicit incentive contracts when there are some fair-minded players. But …, which offer important new insights into the interaction of contract choices, fairness and incentives. …