Incentives often distort behavior: they induce agents to exert effort but this effort is not employed optimally. This … paper proposes a theory of incentive design allowing for such distorted behavior. At the heart of the theory is a trade …-off between getting the agent to exert effort and ensuring that this effort is used well. The theory covers various moral …

When politicians are provided with insufficient incentives by the democratic election mechanism, we show that social …

When politicians are provided with insufficient incentives by the democratic election mechanism, we show that social …

assign a non-profit-maximization objective to their managers. Consequently, managers in a delegation game invest more in cost …. Secondly, we find that R&D collusion induces owners in a delegation game to choose more aggressive managerial incentives as …

assign a non-profit-maximization objective to their managers. Consequently, managers in a delegation game invest more in cost …. Secondly, we find that R&D collusion induces owners in a delegation game to choose more aggressive managerial incentives as …

reduce the effort costs of a worker, and analyze the optimal combination of motivational effort and monetary incentives. We … conditions under which monetary incentives and motivational effort are substitutes or complements, and show that motivational …

reduce the effort costs of a worker, and analyze the optimal combination of motivational effort and monetary incentives. We … conditions under which monetary incentives and motivational effort are substitutes or complements, and show that motivational …