Self-Selection and the Power of Incentive Schemes: An Experimental Study
Jana Vyrastekova (),
Sander Onderstal () and
Pierre Koning ()
No 10-074/1, Tinbergen Institute Discussion Papers from Tinbergen Institute
This discussion paper led to an article in Applied Economics (2012). Vol. 44(32), pages 4211-4219. We examine how self-selection of workers into firms depends on the power of the firms' incentive schemes and how it affects the performance of firms that increase the power of the incentive schemes. In a laboratory experiment, we let subjects choose between (low-powered) team incentives and (high-powered) individual incentives. We observe that subjects exhibiting high trust or reciprocity in the trust game are more likely to choose team incentives. When exposed to individual incentives, workers who chose team incentives perform worse if both the unobservable interdependency between workers and their incentive to cooperate under team incentives are high.
Keywords: Incentive scheme; Self-selection; Laboratory experiment (search for similar items in EconPapers)
JEL-codes: C91 J33 M52 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: Self-selection and the Power of Incentive Schemes: An Experimental Study (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20100074
Access Statistics for this paper
More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().