Present or future incentives? On the optimality of fixed wages with moral hazard
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DOI: 10.1016/j.jebo.2017.12.004
Abstract: Abstract This paper uses a laboratory experiment to show that principals can defer all incentives for present effort to future payments—and thus pay fixed wages—and still motivate workers at the least cost whenever outcomes are… read more here.
Keywords: moral hazard; future incentives; fixed wages; incentives optimality ... See more keywords