The Role of Salience in Performance Schemes: Evidence from a Field Experiment
32 Pages Posted: 4 Apr 2012
There are 3 versions of this paper
The Role of Salience in Performance Schemes: Evidence from a Field Experiment
The Role of Salience in Performance Schemes: Evidence from a Field Experiment
Date Written: March 2012
Abstract
Incentive schemes affect performance and priorities of agents but, in reality, they can be complicated even for simple tasks. We analyze the effects of the salience of incentives in a team production setting where the principal has an interest in quantity and quality of output. We use data from a controlled field experiment that changed the communication of the incentive system without changing the incentive system. The results indicate that salience of incentives itself is statistically and economically important for performance. We find that higher salience of incentives for quantity increases quantity, reduces quality, and increases in-pocket income of team managers.
Keywords: attention, communication, field experiments, incentives, salience
JEL Classification: D03, D80, J30, M52
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Nava Ashraf, Dean S. Karlan, ...
-
Limited and Varying Consumer Attention: Evidence from Shocks to the Salience of Bank Overdraft Fees
By Victor Stango and Jonathan Zinman
-
Limited and Varying Consumer Attention: Evidence from Shocks to the Salience of Bank Overdraft Fees
By Victor Stango and Jonathan Zinman
-
Getting to the Top of Mind: How Reminders Increase Saving
By Dean S. Karlan, Margaret Mcconnell, ...
-
Getting to the Top of Mind: How Reminders Increase Saving
By Dean S. Karlan, Margaret Mcconnell, ...
-
Getting to the Top of Mind: How Reminders Increase Saving
By Dean S. Karlan, Margaret Mcconnell, ...
-
Getting to the Top of Mind: How Reminders Increase Saving
By Dean S. Karlan, Margaret Mcconnell, ...
-
Getting to the Top of Mind: How Reminders Increase Saving
By Dean S. Karlan, Margaret Mcconnell, ...
-
By Ian Ayres, Sophie Raseman, ...
-
By Ian Ayres, Sophie Raseman, ...