• Medientyp: Bericht; E-Book
  • Titel: Goal setting in the principal-agent model: Weak incentives for strong performance
  • Beteiligte: Corgnet, Brice [Verfasser:in]; Gómez-Miñambres, Joaquín [Verfasser:in]; Hernán-González, Roberto [Verfasser:in]
  • Erschienen: Nottingham: The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx), 2016
  • Sprache: Englisch
  • Schlagwörter: non-monetary incentives ; reference-dependent utility ; D23 ; principal-agent models ; incentive theory ; C92 ; M54 ; laboratory experiments ; goal setting
  • Entstehung:
  • Anmerkungen: Diese Datenquelle enthält auch Bestandsnachweise, die nicht zu einem Volltext führen.
  • Beschreibung: We study a principal-agent framework in which principals can assign wage-irrelevant goals to agents. We find evidence that, when given the possibility to set wage-irrelevant goals, principals select incentive contracts for which pay is less responsive to agents' performance. Agents' performance is higher in the presence of goal setting despite weaker incentives. We develop a principal-agent model with reference-dependent utility that illustrates how labor contracts combining weak monetary incentives and wage-irrelevant goals can be optimal. The pervasive use of non-monetary incentives in the workplace may help account for previous empirical findings suggesting that firms rely on unexpectedly weak monetary incentives.
  • Zugangsstatus: Freier Zugang