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                                       Details for article 9 of 10 found articles
 
 
  The Monotonicity Puzzle: An Experimental Investigation of Incentive Structures
 
 
Title: The Monotonicity Puzzle: An Experimental Investigation of Incentive Structures
Author: Jeannette Brosig
Christian Lukas
Thomas Riechmann
Appeared in: Business research
Paging: Volume 3 (2010) nr. 1 pages 8-35
Year: 2010
Contents: Non-monotone incentive structures, which - according to theory - are able to induce optimal behavior, are often regarded as empirically less relevant for labor relationships. We compare the performance of a theoretically optimal non-monotone contract with a monotone one under controlled laboratory conditions. Implementing some features relevant to real-world employment relationships, our paper demonstrates that, in fact, the frequency of income-maximizing decisions made by agents is higher under the monotone contract. Although this observed behavior does not change the superiority of the non-monotone contract for principals, they do not choose this contract type in a significant way. This is what we call the monotonicity puzzle. Detailed investigations of decisions provide a clue for solving the puzzle and a possible explanation for the popularity of monotone contracts.
Publisher: Verband der Hochschullehrer für Betriebswirtschaft e.V. (provided by DOAJ)
Source file: Elektronische Wetenschappelijke Tijdschriften
 
 

                             Details for article 9 of 10 found articles
 
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