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When exogenously imposed, rank-order tournaments have incentive properties but their overall efficiency is reduced by a high variance in performance (Bull, Schotter, and Weigelt 1987). However, since the efficiency of performance-related pay is attributable both to its incentive effect and to...
Persistent link: https://www.econbiz.de/10005763542
experiment that analyzes the influence of other-regarding preferences on sorting and incentives. Experimental evidence shows that … the provision of incentives and their sorting effect. …
Persistent link: https://www.econbiz.de/10005763609
. Such behavior may call for high-powered incentives, so that increased effort by the worker little increases the income of … various assumptions about the object and generality of envy. Envy amplifies the effect of incentives on effort and, therefore …
Persistent link: https://www.econbiz.de/10005765867
Theory and evidence are ambiguous about the effect of within-firm wage inequality on firm performance. This paper tests empirically this relationship drawing on detailed Brazilian matched employer-employee panel data, considering alternative measures of inequality and performance and different...
Persistent link: https://www.econbiz.de/10005795882
We analyze the effect of peer pressure on the incentives offered by a principal, supposing that there are two agents … it is above that level. Then, peer pressure affects the incentives. More precisely, the principal offers high …-powered incentives to the low-productivity agent and low-powered incentives to the high-productivity agent. As a result, the principal …
Persistent link: https://www.econbiz.de/10005773249
simple rationale for team based incentives in many environments. Fourth, the Sufficient Statistics Result is violated …
Persistent link: https://www.econbiz.de/10005566722
. Our experiment investigates the impact of performance pay on both incentives and sorting and analyzes the influence of … performance pay. Social motivation and reputation influence both the provision of incentives and their sorting effect. …
Persistent link: https://www.econbiz.de/10005424118
In this paper, we analyze group incentives when a proportion of agents feel in- equity aversion as defined by Fehr and … show that a tournament provides strong incentives to agents who only care about their own payo¤ but that it is not …
Persistent link: https://www.econbiz.de/10005029818
The theory of labor contract with worker’s chosen effort level mainly rests upon the principal-agent paradigm. In many labor markets however, the principal is not as free as assumed in the standard theory, but is submitted to some binding institutional constraints. It is requested in...
Persistent link: https://www.econbiz.de/10005030170
When exogenously imposed, rank-order tournaments have incentive properties but their overall efficiency is reduced by a high variance in performance (Bull, Schotter, and Weigelt 1987). However, since the efficiency of performance-related pay is attributable both to its incentive effect and to...
Persistent link: https://www.econbiz.de/10005086299