Give me a challenge or give me a raise

نویسندگان

چکیده

Abstract I study the effect of task difficulty on workers’ effort. find that has an inverse-U effort and this is quantitatively large, especially when compared to conditional monetary rewards. Difficulty acts as a mediator rewards: rewards are most effective at intermediate or high levels difficulty. The pattern response inconsistent with many popular models in literature, including Expected Utility additively separable cost propose alternative mechanism for observed behavior based non-linear probability weighting. structurally estimate proposed model it successfully captures behavioral patterns data. discuss implications my findings design optimal incentive schemes workers provision.

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ژورنال

عنوان ژورنال: Experimental Economics

سال: 2021

ISSN: ['1386-4157', '1573-6938']

DOI: https://doi.org/10.1007/s10683-021-09709-8