's prospects are ambiguous, the use of extrinsic, high-powered incentives can lead the agent's beliefs about the project's outcome … alleviated for firms in which agents have strong intrinsic incentives to adhere to firms' goals and missions. In equilibrium …, extrinsic and intrinsic incentives are complementary, and firms that face greater uncertainty invest more in fostering intrinsic …

incentives to affect these choices. It develops a multi-task model where employees makes choices between their assigned standard … tasks, for which the firm has a performance measure and provides incentives, and privately observed innovation opportunities …-powered incentives for standard tasks to encourage more innovation, yet in equilibrium employees undertake too few innovation. The …