English, Article, Journal or magazine article edition: The Crowding-Out of Work Ethics Grepperud, Sverre; Pedersen, Pål Andreas

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Bookmark: http://trove.nla.gov.au/version/66349
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Crowding-Out of Work Ethics
Author
  • Grepperud, Sverre
  • Pedersen, Pål Andreas
Physical Description
  • preprint
Notes
  • This paper analyses optimal contracts in a principal-agent model where the agent is intrinsically motivated at the outset and there is an endogenous relationship between the structure of incentive payments and intrinsic motivation (crowding effects). The analysis shows that crowding effects have implications for the optimal contract and that under some conditions the principal can do better without implementing any economic incentives. Furthermore, it is shown that when high-powered incentives diminish intrinsic motivation (crowding-out) the first-best solution in a principal-agent framework is unattainable.
  • Agency theory; intrinsic motivation; crowding effects
  • RePEc:hhs:oslohe:2001_004
Language
  • English
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