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Lecture on the first SFB/TR 15 meeting, Gummersbach, July, 18 - 20, 2004: The existing literature on the comparison of tournaments and piece rates as alternative incentive schemes has focused on the case of unlimited liability. However, in practice real workers' wealth is typically restricted....
Persistent link: https://www.econbiz.de/10010343971
We run a field experiment to investigate whether competing in rank-order tournaments with different prize spreads affects individual performance. Our experiment involved students from an Italian University who took an intermediate exam in which one part was awarded on the basis of their relative...
Persistent link: https://www.econbiz.de/10011455813
Several empirical findings have challenged the traditional trade-off between risk and incentives. By combining risk … risk and incentives can be explained. …
Persistent link: https://www.econbiz.de/10010383029
work, agents usually make their effort choice in response to competition and monetary incentives. At the same time, they … also allow for variations in incentives in one work period, in order to analyze spillover effects to the work periods … experimental data. A short-term increase in incentives in one period should lead to higher effort in that period, and, due to …
Persistent link: https://www.econbiz.de/10011976073
Group-based incentive pay is attractive in contexts where production is complex and interdependent, yet freeriding is a paramount concern. We assess the introduction of group-based performance pay in a modern industrial production setting using difference-in-difference estimation. Performance...
Persistent link: https://www.econbiz.de/10012804137
anonymity principle. Incentives do matter regarding the crowding effect toward users …
Persistent link: https://www.econbiz.de/10013318907
competition affect agents' performance? In a real-effort laboratory experiment, we study a one-time increase in incentives in a … sequence of equally incentivized contests. Our results suggest that a short-term increase in incentives induces a behavioral …
Persistent link: https://www.econbiz.de/10011895040
Conventional wisdom suggests that an increase in monetary incentives should induce agents to exert higher effort. In … with positive externalities between agents, incentive reversal might occur: an increase in monetary incentives (either … and report on two experiments that provide supportive evidence. -- incentives ; incentive reversal ; team production …
Persistent link: https://www.econbiz.de/10009230143
(individual or group performance) and its design (commissions, piece-rate or sharing schemes). Individual incentives demonstrate … the largest effect, while group or team incentives are smaller in magnitude. The case for government intervention through … tax breaks and other financial incentives is highly debated due to differences across firms and the potential for economic …
Persistent link: https://www.econbiz.de/10011431686
This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a setting with moral hazard, private information and risk-averse agents. Two vertically differentiated firms compete for agents by offering contracts with fixed and variable...
Persistent link: https://www.econbiz.de/10010411960