Incentive reversal

Winter, E. (2009) Incentive reversal. American Economic Journal: Microeconomics, 1 (2). pp. 133-147. ISSN 1945-7669

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Abstract

By incentive reversal we refer to situations in which an increase in rewards for all agents results in fewer agents exerting effort. We show that externalities among peers may give rise to such intriguing situations even when all agents are fully rational. We provide a necessary and sufficient condition for the organizational technology so that it will be susceptible to incentive reversal. The condition implies that some degree of complementarity is enough to allow incentive reversal.

Item Type:
Journal Article
Journal or Publication Title:
American Economic Journal: Microeconomics
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/2000
Subjects:
ID Code:
126907
Deposited By:
Deposited On:
14 Aug 2018 13:54
Refereed?:
Yes
Published?:
Published
Last Modified:
07 Jan 2020 06:20