Incentive Design and Mis-Allocated Effort

Conference object, Preprint English OPEN
Schnedler, Wendelin;
  • Publisher: ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft Kiel und Hamburg
  • Subject: D86 | M52 | J33
    • jel: jel:D86 | jel:M52 | jel:J33
      ddc: ddc:330

Incentives often distort behavior: they induce agents to exert effort but this effort is not employed optimally. This paper proposes a theory of incentive design allowing for such distorted behavior. At the heart of the theory is a trade-off between getting the agent to... View more
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