Experimental evidence on financial incentives, information and decision-making

Ian M. Dobbs and Anthony D. Miller

The British Accounting Review, 2009, vol. 41, issue 2, 71-89

Abstract: This paper reports on a series of experiments aimed at exploring in greater detail previous work on the effects of financial incentives on information use and task performance in a principal-agent setting. The paper also develops some new statistical modelling in the area of experimental testing including incorporation into the modelling approach of data from post-experiment questionnaires. We find significant support for the finding that profit-related individual money rewards encourage increased accessing of valuable but costly past profit information by agents – and that this in turn enhances individual performance in earning profit for the agency.

Keywords: Experiments; Incentives; Learning (search for similar items in EconPapers)
JEL-codes: C91 D83 J33 M52 (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:eee:bracre:v:41:y:2009:i:2:p:71-89

DOI: 10.1016/j.bar.2008.10.002

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