As a new regulation comes into effect, a program of inspection must be set up to guarantee that the requirements are completed by the subjected facilities. Then the facilities must make the necessary corrective actions within reasonable times. Various questions arise when we evoke the subject of...

La plupart des organisations, sinon toutes, répartissent d'une manière ou d'une autre des coûts communs entre leurs diverses composantes ou encore entre leurs différents partenaires. Ces problèmes de partage de coûts communs se posent avec de plus en plus d'acuité car les règles de...

We consider the response to incentives as an explanation for productivity differences within a firm that paid its workers piece rates. We provide a framework within which observed productivity differences can be decomposed into two parts: one due to differences in ability and the other due to...

We consider the cost of providing incentives through tournaments when workers are inequity averse and performance evaluation is costly. The principal never benefits from empathy between the workers, but he may benefit from their propensity for envy depending on the costs of assessing...

We analyze a two-task work environment with risk-neutral but inequality averse individuals. For the agent employed in task 2 effort is verifiable, while in task 1 it is not. Accordingly, agent 1 receives an incentive contract which, due to his wealth constraint, leads to a rent that the other...

Data from a field experiment are used to estimate the gain in productivity that is realized when workers are paid piece rates rather than fixed wages. The experiment was conducted within a tree-planting firm and provides daily observations on individual worker productivity under both copensation...

The analysis of organizational change and particularly of its impacts on incentives is neither simple nor easy. We consider here four contexts (choosing a level of decentralization, choosing the level of responsibility for pollution damage, choosing a level of technological or organisational...

We compare the wage costs of providing incentives through group versus individual bonus schemes. When workers are envious, either scheme may be the least cost one owing to the trade-off between the dissatisfaction with the prospect of unequal pay and the incentives it generates Nous comparons...

In this general equilibrium model, justice and police institutions are treated as a mechanism that induces individuals to extend some desirable productive effort. This determines individual encroachment activities which in turn determine the proportion of aggregate production that fails to be...

The role of field experiments in evaluating the effect of compensation policies on worker productivity is considered. Particular attention is paid to the ability of a field experiment to identify the effect of a permanent change in firm policy. While field experiments solve endogeneity problems...