Experimental Evidence on Inequity Aversion and Self-Selection between Incentive Contracts
نویسندگان
چکیده
منابع مشابه
Experimental Evidence on Inequity Aversion and Self-Selection between Incentive Contracts
When only group performance is observable, incentives depend on the distribution of payments between group members. This distribution differs between firms. In this paper, we analyze whether the coexistence of various group performance-based payment schemes on the labor market can be related to agents’ heterogeneity. We test by a laboratory experiment whether agents self-select between a compet...
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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 show that the choice of the competition is negatively affected by disadvantageous inequity aversion ...
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This paper analyzes the interaction of fairness concerns and social comparisons with asymmetric information and incentives within the context of a firm’s employment decision. It studies optimal, incentive-compatible employment contracts if each worker is inequity averse he suffers from being ‘worse off’ than his colleagues and has private information about his productivity. Inequity aversion is...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2008
ISSN: 1556-5068
DOI: 10.2139/ssrn.1170767