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

When designing incentives for a manager, the trade-off between insurance and a "good" allocation of effort across …

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 …

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 …

that show, in a very general setting, that the choice between work effort and leisure under given linear incentives depends …

It is difficult to test the prediction that future career prospects create implicit effort incentives because …

It is difficult to test the prediction that future career prospects create implicit effort incentives because …

Tournaments are often used to improve performance in innovation contexts. Tournaments provide monetary incentives but …,700 participants), we vary the salience of team identity, social-image concerns, and whether teams face monetary incentives. Increased … monetary incentives improve all teams’ outcomes without crowding out teams’ willingness to explore or perform similar tasks …

Standard economics models require that financial incentives improve performance, while leading theories in psychology …