Incentives in Agency Relationships: To Be Monetary or Non-Monetary?

Preprint OPEN
Patricia Crifo; Marc-Arthur Diaye; (2004)
  • Subject: Agency Relationships, Non-Monetary Incentives, Motivation Crowding Effect
    • jel: jel:D61 | jel:D82

In this paper, we develop a Principal-Agent model with both monetary and non-monetary incentives. We show that the latter are always more efficient, that is Pareto-dominate, monetary incentives. Indeed, we not only show that all what monetary incentives can do, non-mone... View more
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