The use of tangible rewards in the form of non-cash incentives with a monetary value has become increasingly common at organizations (Peltier, Schultz and Block 2005). Despite their use, the behavioral and performance effects of tangible rewards have received minimal research attention. Relative...

Economists studying innovation and technological change have made significant progress towards understanding firms’ profit incentives as drivers of innovation. However, innovative performance in firms should also depend heavily on the pecuniary and nonpecuniary motives of the individuals...

I analyze the impact of managerial involvement and the allocation of authority on employee initiative in a setting where both a manager and an employee can come up with new ideas for implementation. Extending the analysis of Aghion and Tirole (1997), the model introduces two effects that are...

We investigate how the convexity of a firm’s incentives interacts with worker overconfidence to affect sorting decisions and performance. We demonstrate experimentally that overconfident employees are more likely to sort into a non-linear incentive scheme over a linear one, even though this...

It is difficult to test the prediction that future career prospects create implicit effort incentives because researchers cannot randomly “assign” career prospects to economic agents. To overcome this challenge, we use data from professional soccer, where employees of the same club face...

The production of new IT products and services in today's dynamic world of business and ever-evolving technology requires specific enterprise policies geared toward supporting innovation. Striving to provide the customer with the required value that meets the customer's current requirements is...