Summary This article reviews the basic theoretical model of risk adjustment (Glazer/McGuire 2000) with a special focus on a coherent presentation of the main results. With adverse selection a regulator pursuing efficiency and solidarity objectives will need a risk adjustment scheme acting on a...

Summary In order to avoid too many tied games after playing the five-minute overtime period, the National Hockey League (NHL) introduced two rule changes in the 1999-2000 season. First, a team that loses in overtime receives one point instead of zero points. Second, the number of skaters in...

High unemployment in many OECD countries is often attributed, at least in part, to the generosity and long duration of unemployment compensation. It is therefore instructive to examine a country where high unemployment exists despite the near complete absence of an unemployment insurance system....

As firms implement tournament bonus reward schemes, mainly the idea is to introduce competition amongst their agents in the order to promote their performance. Tournaments in which agents compete for a bonus by investing effort, are frequently applied, e.g., in development races, political...

In this paper we provide an overview of the literature relating labour supply to taxes and welfare benefits with a focus on presenting the empirical consensus. We begin with a basic continuous hours model, where individuals have completely free choice over their hours of work. We then consider...

The empirical analysis of the impact of long-term contracts on performance is challenging for two reasons: first, it is difficult to get adequate performance measures and second, potentially negative incentive effects of long-term contracts are countervailed by selection effects when workers...

In this paper we provide an overview of the literature relating labour supply to taxes and welfare benefits with a focus on presenting the empirical consensus. We begin with a basic continuous hours model, where individuals have completely free choice over their hours of work. We then consider...

This paper analyzes in a large-scale field experiment (N = 2,980) the incentive effects of monetary vs. non-monetary incentives on the usage of a sustainable Demand Responsive Transport (DRT) system. Financial incentives were implemented by offering customers vouchers, which were received when...

Group-based incentive pay is attractive in contexts where production is complex and interdependent, yet freeriding is a paramount concern. We assess the introduction of group-based performance pay in a modern industrial production setting using difference-in-difference estimation. Performance...

This paper analyzes in a large-scale field experiment (N = 1425) whether gift vouchers stimulate the use of a demand responsive transportation (DRT) system. This scenario is compared to a situation where customers receive environmental certificates, which report the saved carbon dioxide as a...