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sophisticated ways to misalign workers’ incentives can be used to extract the full surplus from a team of workers growing …
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Recent work has shown that, in the presence of moral hazard, balanced budget Nash equilibria in groups are not pareto-optimal. This work shows that when agents misperceive the effects of their actions on the joint outcome, there exist a set of sharing rules which balance the budget and lead to a...
Persistent link: https://www.econbiz.de/10012476839
This paper analyzes awards as a means of motivation prevalent in the scientific community, but so far neglected in the economic literature on incentives, and discusses their relationship to monetary compensation. Awards are better suited than performance pay to reward scientific tasks, which are...
Persistent link: https://www.econbiz.de/10012765608
joint bonus floor is useful because of its role in motivating the agents to mutually monitor each other (team incentives …). In an extension section, we introduce a verifiable team performance measure, in part to establish the robustness of our … results. In this case, the optimal contract either ignores the team measure completely or uses it to create a conditional …
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It is s important for firms to choose appropriate performance measurements when they evaluate their employees' performance. In this paper, we examine the relationship between uncertainty and incentives in which the risk-averse agent has the specific knowledge. We show that uncertainty does not...
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observed individual signals should be aggregated to a commonly observed team signal …
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