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This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a setting with moral hazard, private information and risk-averse agents. Two vertically differentiated firms compete for agents by offering contracts with fixed and variable...
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This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a setting with moral hazard and risk-averse agents, who have private information on their productivity. Two vertically differentiated firms compete for agents by offering contracts...
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competition affect agents' performance? In a real-effort laboratory experiment, we study a one-time increase in incentives in a … sequence of equally incentivized contests. Our results suggest that a short-term increase in incentives induces a behavioral …
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