Incentive Schemes, Sorting, and Behavioral Biases of Employees: Experimental Evidence
نویسندگان
چکیده
منابع مشابه
Do Convex Incentive Schemes Attract Overconfident Employees? Experimental Evidence*
Convex incentive schemes, which pay employees an increasing percentage of output as their output increases, are commonly used by companies, especially in sales environments. Research has demonstrated these schemes carry large costs as employees “game” them, yet they are still persistently used. Using a set of experiments where subjects have the choice of incentive scheme, we examine whether a c...
متن کاملPaying For Performance: Incentive Pay Schemes and Employees' Financial Participation
We present new comparable data on the incidence of performance pay schemes in Europe and the USA. We find that the percentage of employees exposed to incentive pay schemes ranges from around 10-15 percent in some European countries to over 40 percent in Scandinavian countries and the US. Individual pay and profit/gain sharing schemes are widely diffused, whereas share ownership schemes are much...
متن کاملBehavioral Finance Models and Behavioral Biases in Stock Price Forecasting
Stock market is affected by news and information. If the stock market is not efficient, the reaction of stock price to news and information will place the stock market in overreaction and under-reaction states. Many models have been already presented by using different tools and techniques to forecast the stock market behavior. In this study, the reaction of stock price in the stock market was ...
متن کاملBehavioral Biases and Firm Behavior: Evidence from Kenyan Retail Shops
Many subjects in lab experiments show considerable risk aversion in small-stakes gambles. This is counter to the predictions of expected utility theory for any reasonable degree of risk aversion (Rabin 2000) but is consistent with loss aversion in prospect theory. Benjamin, Brown, and Shapiro (forthcoming) show that math skills reduce small-stakes risk aversion, consistent with broader evidence...
متن کاملBehavioral Biases and Investment
We use a new and unique dataset to investigate the way investors react to prior gains/losses and the so called ”familiarity” bias. We distinguish between di¤erent behavioral theories (loss aversion, house-money e¤ect, mental accounting) and between behavioral and rational hypotheses (pure familiarity and informationbased familiarity). We show that, on an yearly horizon, investors react to previ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: American Economic Journal: Microeconomics
سال: 2012
ISSN: 1945-7669,1945-7685
DOI: 10.1257/mic.4.2.184