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We study how help can be fostered by means of a team bonus in the presence of rank-order tournaments. In a simple model … we combine elements of relative rewards and a team bonus and study their effect on effort, help and sabotage. Quite … intuitively the theoretical analysis suggests that team members help less as relative rewards increase. This problem is mitigated …
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reversals between frames, for which incentives have no effect. Incentives on the other hand are found to reduce risk seeking for …
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Using ideas from status characteristics theory, this essay examines the role of status-induced biases regarding an … agent's beliefs about her abilities and those of others. According to the theory of status characteristics and expectation … (compensation based on relative performance) are less efficient than team-based incentives …
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