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performance in financial institutions and in financial regulation and supervision all over the world. The contributors to the … decisionmakers have a better chance of showing good performance in the future. In essence, they are looking for new paradigms in …
Persistent link: https://www.econbiz.de/10011711451
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...
Persistent link: https://www.econbiz.de/10010344596
aggregate performance measurement. Due to cost advantages of specialization, assigning the tasks to different agents is … production process. Imperfect performance measurement always lowers profit under multitasking, but may increase profit under …
Persistent link: https://www.econbiz.de/10010339385
We examine the benefits of objective performance measurement in a field experiment conducted in a retail bank. At the … outset objective performance measures of pro fits in each branch were only available on the branch level and managers … to individual performance measures. We find a significant positive impact of objective performance measurement on effort …
Persistent link: https://www.econbiz.de/10010338944
Managers often use tournament incentive schemes which motivate workers to compete for the top, compete to avoid the bottom, or both. In this paper we test the effectiveness and efficiency of these incentive schemes. To do so, we utilize optimal contracts in a principal-agent setting, using a...
Persistent link: https://www.econbiz.de/10010340563
right, while being paid the same wages as the first group. We find that performance is about 12% higher when employees self … performance decrease. An online follow-up survey reveals that the surprisingly high level of performance seems to be driven by …
Persistent link: https://www.econbiz.de/10010486690
This study uses rich information on performance outcomes to estimate the effect of bonus pay on worker productivity. We … monetary bonuses upon achieving pre-defined performance thresholds. The results show that the bonus is associated with an … increase of a third of a standard deviation in the underlying performance outcome. This effect is mostly driven by low …
Persistent link: https://www.econbiz.de/10010489250
On 16th November 2009, SUERF, CEPS and the Belgian Financial Forum coorganized a conference "Crisis management at cross-roads" in Brussels. All papers in the present volume are based on contributions at the conference and the SUERF Annual Lecture which followed the event.
Persistent link: https://www.econbiz.de/10011706117