Bonuses in the Mail

Dopamine Bonuses

Substantial data support a temporal difference (TO) model of dopamine (OA) neuron activity in which the cells provide a global error signal for reinforcement learning. However, in certain circumstances, OA activity seems anomalous under the TO model, responding to non-rewarding stimuli. We address these anomalies by suggesting that OA cells multiplex information about reward bonuses, including ...

Dopamine: generalization and bonuses

In the temporal difference model of primate dopamine neurons, their phasic activity reports a prediction error for future reward. This model is supported by a wealth of experimental data. However, in certain circumstances, the activity of the dopamine cells seems anomalous under the model, as they respond in particular ways to stimuli that are not obviously related to predictions of reward. In ...

Enhancing fundraising with refund bonuses

The provision point mechanism as a method of funding threshold public goods is extended with refund bonuses. Each contributor not only has his contribution refunded in the case of insufficient contributions but also receives a refund bonus proportional to his proposed contribution. As long as the refund bonus pool does not exceed the net value of the public good, in equilibrium the public good ...

Bonuses and bribes: Mood Effects in Memory

Bank Bonuses and Bail-Outs

This paper shows that bonus contracts may arise endogenously as a response to agency problems within banks, and analyzes how compensation schemes change in reaction to anticipated bail-outs. If there is a risk-shifting problem, bail-out expectations lead to steeper bonus schemes and even more risk-taking. If there is an effort problem, the compensation scheme becomes flatter and effort decrease...