This study explores the effects of subjective ex-post adjustments of objective performance in a tournament incentive contract including both rewards and penalties. We extend prior literature on the tradeoffs associated with subjectivity in performance evaluations by considering the effects of...

This paper reports on the results of an experiment testing whether the agents selfselect between a competitive payment scheme and a revenue-sharing scheme depending on their inequity aversion. Average efficiency should be increased when these payment schemes are endogenously chosen by agents. We...

Trial by one's peers is a foundation of the American legal system. In this paper, I present evidence that in addition to legally relevant facts, financial incentives influence the jury deliberation process. I take advantage of cross county variation in the opportunity cost of serving as a juror,...

In this chapter we provide a selective survey of experiments to investigate the potential of social motivations in explaining labour market phenomena. We argue that laboratory experiments are a useful instrument to explore issues in labour market theory and personnel economics. Our starting...