The Hidden Costs of Control
Michael Kosfeld () and
Armin Falk ()
American Economic Review, 2006, vol. 96, issue 5, pages 1611-1630
We analyze the consequences of control on motivation in an experimental principalagent game, where the principal can control the agent by implementing a minimum performance requirement before the agent chooses a productive activity. Our results show that control entails hidden costs since most agents reduce their performance as a response to the principal?s controlling decision. Overall, the effect of control on the principal?s payoff is nonmonotonic. When asked for their emotional perception of control, most agents who react negatively say that they perceive the controlling decision as a signal of distrust and a limitation of their choice autonomy. (JEL D82, Z13)
Note: DOI: 10.1257/aer.96.5.1611
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (144) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: The Hidden Costs of Control
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:aea:aecrev:v:96:y:2006:i:5:p:1611-1630
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Pinelopi Koujianou Goldberg
More articles in American Economic Review from American Economic Association
Contact information at EDIRC.
Series data maintained by Jane Voros ().