Standard models of moral hazard predict a negative relationship between risk and incentives, but the empirical work has … incentives decreases with risk aversion, more risk-averse agents prefer lower-incentive contracts; thus, in the optimal contract …, incentives are positively correlated with endogenous risk. In contrast, if risk aversion is high enough, the possibility of …

assumption, which we relax. We find that, although monetary incentives are effective also with sociallyattentive agents, the … monetary incentives. We also show that the principal benefits from having a socially-attentive agent and how she optimally …

This paper investigates the optimal design of incentives when agents distort probabilities. We show that the type of …, the strength of the incentives included in the optimal contract, and the location of incentives on the output space. Our …

Incentives often distort behavior: they induce agents to exert effort but this effort is not employed optimally. This …

efficiency. However, fully efficient incentives are achievable if the firm can commit to a forced distribution of evaluations and …

Standard models of moral hazard predict a negative relationship between risk and incentives, but the empirical work has … incentives decreases with risk aversion, more risk-averse agents prefer lower-incentive contracts; thus, in the optimal contract …, incentives are positively correlated with endogenous risk. In contrast, if risk aversion is high enough, the possibility of …

This paper seeks to explore how an agent's incentives to perform influences her performance. We analyze this question … show that the relationship between the incentives to perform and the expected performance could be negative. The paper thus … offers a novel, non-behavioral explanation for the failure of incentives …

Employees often learn about their ability while working, and the resulting beliefs interact with pay incentives to … job, dynamic selection, effort, and variation in pay incentives. The empirical analysis is based on unique data from a US … which pay incentives affect employment outcomes, profits, and compensation. Under the implemented and the profit …

I study the role of financial incentives as signals of job characteristics when these are unknown to potential … incentives on candidates' perception of a brand-new health-promoter position in Uganda and on the resulting size and composition … the community and discourage agents with strong prosocial preferences from applying. While higher financial incentives …