Monetary and non-monetary incentives in real-effort tournaments

Optimal effort incentives in dynamic tournaments

This paper analyzes two-stage rank-order tournaments. A principal decides (i) how to spread prize money across the two periods, (ii) how to weigh performance in the two periods when awarding the second-period prize, and (iii) whether to reveal performance after the first period. The information revelation policy depends exclusively on properties of the effort cost function. The principal always...

Optimal Effort Incentives in Dynamic Tournaments

Linking goals to monetary incentives

Every experienced executive knows the importance of rewarding good performance and also how difficult it is to design an incentive system that works as it is supposed to. A recent article in the Wall Street Journal1 reported that Hewitt Associates found that 83 per cent of companies with a pay-for-performance system said that their incentive plan was “only somewhat successful or not working at ...

Motivation and monetary incentives: A closer look

Do higher levels of variable pay reduce salesperson intrinsic motivation? The pattern of findings from past sales management studies is intriguing and may suggest self-determination concepts are applicable. Testing this applicability on a cross-section of industrial salespeople, we found pay plans with higher variable proportions can lead to higher levels of intrinsic motivation. As hypothesize...

Coupons as Monetary Incentives in Participatory Sensing

Participation of people is the most important factor in providing high quality of service in mobile sensing applications. In this paper we study coupons as incentives in order to stimulate users participation, especially in applications that rely on real-time data. We argue that coupons do not only function as incentives to increase user participation, but they can also direct more people to th...