Carrots that look like sticks: Toward an understanding of multitasking incentive schemes

Nber Working Paper Series Carrots That Look like Sticks: toward an Understanding of Multitasking Incentive Schemes

Constructing compensation schemes for effort in multi-dimensional tasks is complex, particularly when some dimensions are not easily observable. When incentive schemes contractually reward workers for easily observed measures, such as quantity produced, the standard model predicts that unrewarded dimensions, such as quality, will be neglected. Yet, there remains mixed empirical evidence in favo...

Sticks and Carrots: Two Incentive Mechanisms Supporting Intra-Group Cooperation

In this note, we introduce two distinct incentive mechanisms that support dynamic intra-group cooperation in the context of prisoner’s dilemma payoffs. The first mechanism involves a reward structure—a carrot—that supports both triadic and tripartite group relations. The second mechanism involves a punishment structure—a stick—that supports tripartite group relations. We also discuss how these ...

Sticks and Carrots in Procurement∗

We study differently framed incentives in dynamic laboratory buyerseller relationships with multi-tasking and endogenous matching. The experimental design tries to mitigate the role of social preferences and intrinsic motivation. Absent explicit incentives, effort is low in both tasks. Their introduction boosts efficiency substantially increasing effort in the contractible task, mildly crowding...

Editorials Carrots, sticks and tuberculosis

The spectrum of nitrofurantoin lung injury continues to widen. The case histories are presented of two patients who developed lung disease associated with the use of nitrofurantoin with histological features of bronchiolitis obliterans organising pneumonia (BOOP), a rare but recognised form of drug induced injury. The two middle aged women presented with respiratory symptoms after prolonged tre...

Carrots and sticks for quality health care.