Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86777
Authors: 
Sloof, Randolph
van Praag, C. Mirjam
Year of Publication: 
2008
Series/Report no.: 
Tinbergen Institute Discussion Paper 08-074/1
Abstract: 
This paper reports the results of an individual real effort laboratory experiment where subjects are paid for measured performance. Measured performance equals actual performance plus noise. We compare a stable environment where the noise is small with a volatile environment where the noise is large. Subjects exert significantly more effort in the volatile environment than in the stable environment. This finding is in line with standard agency theory and contrasts a distinct element of expectancy theory; noisier performance measures do not lower work motivation.
Subjects: 
Performance measurement
noise
work motivation
experiments
agency theory
expectancy theory
JEL: 
C91
J33
M52
Document Type: 
Working Paper

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