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Admati and Pfleiderer (2006) demonstrate that under some conditions, linking CEO pay to share price performance may aggravate agency conflicts. Two fundamental conflicts are considered: the manager may take value-destroying, privately beneficial ('bad') actions, or value-enhancing, privately...
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Recent work in experimental economics on the effectiveness of rewards and punishments for promoting cooperation mainly examines decentralized incentive systems where all group members can reward and/or punish one another. Many self-organizing groups and societies, however, concentrate the power...
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; incentives ; Britain …
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This paper studies the interplay between economic incentives and social norms in firms. We introduce a general … also show how social norms can induce multiplicity of equilibria and how steeper economic incentives can reduce effort …. -- social norms ; incentives ; contracts …
Persistent link: https://www.econbiz.de/10009154576
Conventional wisdom suggests that an increase in monetary incentives should induce agents to exert higher effort. In … with positive externalities between agents, incentive reversal might occur: an increase in monetary incentives (either … and report on two experiments that provide supportive evidence. -- incentives ; incentive reversal ; team production …
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