This study examines the joint effect that probabilistic audits and compensation interdependence have on misreporting. In an experiment that holds the true detection rate equal, I find participants perceive a probabilistic audit to be more effective (i.e., more likely to detect misreporting) when...

Recent incentive compensation trends suggest that many firms are (a) increasing the frequency with which they reward their employees and (b) providing gift-like unconditional rewards to employees irrespective of performance. This study investigates how reward frequency and reward conditionality...

Recent trends in incentive compensation highlight two important features regarding performance-based rewards: (a) firms are offering rewards more frequently, and (b) firms are increasingly using tangible rewards in lieu of cash rewards to motivate employees. This study investigates how reward...

We examine theoretically and experimentally how combining between-team and within-team incentives affects behavior in team tournaments. Theory predicts that free-riding is likely to occur when there are only between-team incentives, and offering within-team incentives may solve this problem....

We examine how decision makers adjust their allocation decisions in risky environments, and how organizational context influences these decisions. Superiors often have discretion over bonus allocations, allowing them to make adjustments for the risk faced by agents. It is thus important to...