talented workers leads to an escalating reliance on performance pay and other high-powered incentives, thereby shifting effort … distorts incentives downward in order to extract rents. More generally, as declining market frictions lead employers to compete …, while inequality tends to rise monotonically. Bonus caps and income taxes can help restore balance in agents' incentives and …

incentives for investments consistent with these reserve requirements. …

), material or other explicit incentives (laws) and social sanctions or rewards (norms). It first examines how honor, stigma and … social norms arise from individuals' behaviors and inferences, and how they interact with material incentives. It then … also what shapes social judgements and moral sentiments. Setting law thus means both imposing material incentives and …