Nonreward incentive and runway performance

Incentive Contracts and Performance Measurement

Comparative psychology of surprising nonreward.

The surprising or unexpected omission of an appetitive reinforcer has at least two effects: An allocentric effect according to which the organism updates knowledge about the environment, and an egocentric effect that allows the organism to learn about its own emotional reaction to the change. This egocentric effect (traditionally called frustration) is correlated to activation of the hypothalam...

Incentive Contracts and Environmental Performance Indicators

A principal-agent (P-A) model is used to analyse the effect of environmental performance indicators (EPI) on environmental risk sharing within the firm. To achieve due diligence, the principal (top management), having to use imperfect performance indicators and fearing penalties for environmental damages, wants to avoid environmental harm and induce the agent (employee manipulating hazardous ma...

Performance ofthe Runway-Status Light System at Logan Airport

.. Runway incursions are a persistent problem in airport ground-movement operations. Numerous critical conflicts and several fatal accidents have occurred as a result of unauthorized or otherwise inappropriate entry of aircra& or surface vehicles onto an active runway. Many of these conflicts developed quickly, leaving little time for effective intervention by either the controller or the pilot...

Subjective Performance Measures in Optimal Incentive Contracts*

Incentive contracts often include important subjective components that mitigate incentive distortions caused by imperfect objective measures. This paper explores the combined use of subjective and objective performance measures in (respectively) implicit and explicit incentive contracts. We show that the presence of sufficiently effective explicit contracts can render all implicit contracts inf...