Showing 1 - 10 of 641,628
these two schemes arise in a unified framework. -- Sabotage ; Tournament ; Fast track ; Late selection …This paper explores the consequences of sabotage for the design of incentive contracts. The possibility of sabotage … the mere possibility of sabotage may make it impossible to implement the first-best effort, and then offer two distinct …
Persistent link: https://www.econbiz.de/10009513823
tournament system induces a higher total output than the optimum premium system. This result occurs because a promotion regime …
Persistent link: https://www.econbiz.de/10011398044
This paper tests two hypotheses from the theory of elimination tournaments: (i) that uneven tournaments, where the contestants are ex ante heterogeneous, entail lower effort exertion; this is a prediction from agency theory that has not been tested empirically before; and (ii) whether incentives...
Persistent link: https://www.econbiz.de/10010261647
This paper examines a two-period tournament where agents may possibly engage in destructive sabotage activities. Under … plausible circumstances, sabotage proves to be an effective tool for low-ability agents, especially when they are faced with … high-ability agents. The possibility of sabotage then gives rise to a dynamic concern, similar to the Ratchet effect …
Persistent link: https://www.econbiz.de/10005558170
the presence of tournament incentives, agents react reciprocally to higher wages, which mitigates the sabotage problem …Although relative performance schemes are pervasive in organizations reliable empirical data on induced sabotage … behavior is almost non-existent. We study sabotage in tournaments in a controlled laboratory experiment and are able to confirm …
Persistent link: https://www.econbiz.de/10010268946
Skilled labour has gained significance as a production factor in the age of information technology, but accounting does not recognize human capital as an asset that contributes to the firm's earning power. This paper suggests a method to develop a latent index to proxy the managerial-skill...
Persistent link: https://www.econbiz.de/10014096640
The multitask agency theory argues that incentive devices for the agent need to be viewed as a system to induce balanced allocation of effort among the tasks. This important insight has not been incorporated into the empirical study of CEO compensation. Since there can be several measures for...
Persistent link: https://www.econbiz.de/10014084983
We survey the theoretical literature on careers in organizations, focusing on models that address detailed evidence or stylized facts. We begin with what we call building-block models: human-capital acquisition, job assignment, incentive contracting, efficiency wages, and tournaments. We then...
Persistent link: https://www.econbiz.de/10014024710
This paper studies sabotage in tournaments with at least three contestants, where the contestants know each other well …. Every contestant has an incentive to direct sabotage specifically against his most dangerous rival. In equilibrium … victims of mobbing are sometimes found to be overachieving. Further, sabotage equalizes promotion chances. The effect is most …
Persistent link: https://www.econbiz.de/10010366526
This study uses panel data describing about 6,500 employees in a large international company to study the incentive effects of performance related pay. The company uses two performance related remuneration mechanisms. One is an individual ''surprise'' bonus payment. The other is a more...
Persistent link: https://www.econbiz.de/10011418219