In this paper we study the effects that loss contracts - prepayments that can be clawbacked later - have on group … control sessions, incentives are formulated as a classic gain contract, while in treatment sessions, incentives are framed as … an isomorphic loss contract. Our results show that loss contracts reduce the minimum efforts of groups and worsen …

Domestic attempts to use financial incentives for teachers to increase student achievement have been ineffective. In … this paper, we demonstrate that exploiting the power of loss aversion--teachers are paid in advance and asked to give back … arm, identical to the loss aversion treatment but implemented in the standard fashion, yields smaller and statistically …