Abstract: Many incentive plans do not include an explicit mapping between workers’ performance and compensation. Potential employees therefore face both risk and uncertainty when choosing whether to accept an employment contract. Using an online labor market, Amazon Mechanical Turk, we...

Many incentive plans are inherently ambiguous, lacking an explicit mapping between performance and compensation. Using an online labor market, Amazon Mechanical Turk, we study the effect of ambiguity on willingness to accept contracts to do a real-effort task as well as completion and...