We formulate a simple model of advice which can be useful to guide the regulation of the financial retail industry. An informed agent (financial adviser) transmits information to an otherwise uninformed principal (investor) with uncertain degree of strategic sophistication. Incentives for truthful information disclosure and information acquisition are studied. The role of explicit monetary tran...

BACKGROUND Few studies have investigated the effect of small unconditional non-monetary incentives on survey response rates amongst GPs or medical practitioners. This study assessed the effectiveness of offering a small unconditional non-financial incentive to increase survey response rates amongst general practitioners within a randomised controlled trial (RCT). METHODS An RCT was conducted ...

BACKGROUND Road injury is the leading cause of death for young people, with human error a contributing factor in many crash events. This research is the first experimental study to examine the extent to which direct feedback and incentive-based insurance modifies a driver's behaviour. The study applies in-vehicle telematics and will link the information obtained from the technology directly to ...

Monetary incentives can backfire while nonstandard interventions, such as framing, can be effective in influencing behavior. I review the empirical evidence on these two sets of anomalies. Paying for inherently interesting tasks, paying for prosocial behavior, paying too much, paying too little, and providing too many options can all be counterproductive. At the same time, proper design of the ...

STUDY OBJECTIVE To quantify the increase in mailed questionnaire response attributable to a monetary incentive. DESIGN A systematic search for randomised controlled trials of monetary incentives and mailed questionnaire response was conducted. For each trial identified, logistic regression was used to estimate the odds ratio for response per 0.01 dollars incentive increase. Odds ratios were p...

Countries having a more individualist culture have enjoyed higher long-run growth than countries with a more collectivist culture. Individualist culture attaches social status rewards to personal achievements and thus, provides not only monetary incentives for innovation but also social status rewards, leading to higher rates of innovation and economic growth.

When a firm undertakes risky activities, the conflict between social and private incentives to exercise safety care requires public intervention. This control takes the form of both monetary incentives but also monitoring taking place either ex ante or ex post, i.e., before or after an accident occurs. We delineate the respective scopes of these monitoring activities when public monitors are ei...

This paper studies the role of leadership style in providing incentives to subordinates. A leadership style is characterized by its degree of decentralization of tasks and its degree of empathy towards subordinates interests. I analyze the optimal leadership style in an incomplete contract framework in which the agent as well as the principal jointly have to solve decision problems and implemen...

We adopt a mechanism design approach to model communication between a principal and a privately informed agent in the context where monetary incentives are not available. We provide a simple condition on the distribution of the agent’s type which ensures that the optimal mechanism is continuous. With strict log-concavity of the distribution, there exists a unique optimal mechanism that is chara...

Recent work in experimental economics has raised that observed behavior depends on whether wealth was windfall or earned. This paper extends this work by considering whether earned wealth a ects bidding behavior in an induced-value second-price auction. We nd people bid more sincerely in the auction with earned wealth given monetary incentives; earned wealth did not induce sincere bidding in hy...