Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/58532 
Year of Publication: 
2012
Series/Report no.: 
IZA Discussion Papers No. 6448
Publisher: 
Institute for the Study of Labor (IZA), Bonn
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.
Subjects: 
incentives
attention
salience
communication
field experiments
JEL: 
M52
J30
D03
D80
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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