Conventional wisdom suggests that an increase in monetary incentives should induce agents to exert higher effort. In this paper, however, we demonstrate that this may not hold in team settings. In the context of sequential team production with positive externalities between agents, incentive...

In diesem Beitrag werden theoretische Erklärungen gesucht für die dauerhaft hohe Abweichungsquote der Entsprechenserklärungen hinsichtlich Vorstandsabfindungen von über 20 % von Empfehlung Ziffer 4.2.3 Abs. 4 Deutscher Corporate Governance Kodex und für die Unabhängigkeit der...

We theoretically and experimentally analyze the role of verifiability and privacy in strategic performance feedback using a “one principal-two agent” context with real effort. We confirm the theoretical prediction that information transmission occurs only in verifiable feedbackmechanisms and...

In diesem Beitrag werden theoretische Erklärungen gesucht für die dauerhaft hohe Abweichungsquote der Entsprechenserklärungen hinsichtlich Vorstandsabfindungen von über 20 % von Empfehlung Ziffer 4.2.3 Abs. 4 Deutscher Corporate Governance Kodex und für die Unabhängigkeit der...

Berkshire Hathaway, among history's largest and most successful corporations, shuns middlemen; its chairman, the legendary investor Warren Buffett, excoriates financial intermediaries. The acquisitive conglomerate rarely borrows money, retains brokers, or hires consultants. Its governance is...

The importance of fair and equal treatment of workers is at the heart of the debate in organizational management. In this regard, we study how reward mechanisms and production technologies affect effort provision in teams. Our experimental results demonstrate that unequal rewards can potentially...

The importance of fair and equal treatment of workers is at the heart of the debate in organizational management. In this regard, we study how reward mechanisms and production technologies affect effort provision in teams. Our experimental results demonstrate that unequal rewards can potentially...

The importance of fair and equal treatment of workers is at the heart of the debate in organizational management. In this regard, we study how reward mechanisms and production technologies affect effort provision in teams. Our experimental results demonstrate that unequal rewards can potentially...

Synergies in production are ubiquitous in shared production processes such as those involving individuals within a team, departments within a firm, or industries within a country. Using a weakest link game with ex post bargaining to redistribute the joint surplus, we study a situation in which...

FeedbackWe theoretically and experimentally analyze public and private feedback in teams that are characterized by different performance technologies. We consider a setting where the principal can provide truthful information on agents’ performances or strategically withhold feedback. We find...