An experimental investigation of the `tenuous trade-off' between risk and incentives in organizations

DOI10.1007/S11238-019-09711-WMaRDI QIDQ2300610zbMATH OpenOpenAlexWikidataFDO

Authors Subhasish M. Chowdhury, Alexandros Karakostas

Publication date 27 February 2020

Published in Theory and Decision (Search for Journal in Brave)

Copyright license Creative Commons Attribution 4.0 International

Full work available at URL https://doi.org/10.1007/s11238-019-09711-w

zbMATH Keywords

hidden actionincentivesmoral hazardrisk

Mathematics Subject Classification ID

Experimental work for problems pertaining to game theory, economics, and finance (91-05) Risk models (general) (91B05) Principal-agent models (91B43)

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Cites work

• A Theory of Fairness, Competition, and Cooperation
• Aggregation and Linearity in the Provision of Intertemporal Incentives
• Do sellers offer menus of contracts to separate buyer types? An experimental test of adverse selection theory
• Efficient contracting and fair play in a simple principal-agent experiment
• Fairness and Contract Design
• How robust is laboratory gift exchange?
• Limited liability and the risk-incentive relationship
• The risk and incentives trade-off in the presence of heterogeneous managers

Cited in

(10)

• Moral hazard in innovation: the relationship between risk aversion and performance pay
• The risk and incentives trade-off in the presence of heterogeneous managers
• Incentive schemes and peer effects on risk behaviour: an experiment
• How do risk attitudes affect pro-social behavior? Theory and experiment
• Risk-incentives trade-off and outside options
• The influence of face-to-face communication: a principal-agent experiment
• Managerial performance incentives and firm risk during economic expansions and recessions
• On managerial risk-taking incentives when compensation may be hedged against
• Limited liability and the risk-incentive relationship
• Experimental perspectives on incentives in organisations

Describes a project that uses

Uses Software

• Z-Tree

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