leads to a countervailing incentive effect: The merged firm's principal may be induced to stifle managerial incentives in … order to reduce her agency costs. Whenever this incentive effect dominates the well-known direct synergy effect, synergies … agents with incentives to cut marginal costs prior to choosing output. We stress that synergies come at a cost which possibly …

Are monetary and non-monetary incentives used as substitutes in motivating effort? I address this question in a … laboratory experiment in which the choice of the job characteristics (i.e., the mission) is part of the compensation package that … and non-monetary incentives imperfect. These findings have implications for the design of incentives in mission …

crowding out due to low-powered incentives. High-powered incentives in the workplace tend to increase output, but it is unknown … also extends to high-powered incentives, in a real work setting with paid workers. There is individual heterogeneity …