Adding a Stick to the Carrot? The Interaction of Bonuses and Fines
نویسندگان
چکیده
منابع مشابه
Adding a Stick to the Carrot? The Interaction of Bonuses and Fines
In this paper we report on a principal-agent experiment where the principal can choose whether to rely on an unenforcable bonus contract or to combine the bonus contract with a fine if the agent’s effort falls below a minimum standard. We show that most principals do not use the fine and that the pure bonus contract is more efficient than the combined contract. Our experiment suggests that prin...
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ژورنال
عنوان ژورنال: American Economic Review
سال: 2007
ISSN: 0002-8282
DOI: 10.1257/aer.97.2.177