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Social Norms and Optimal Incentives in Firms Author info | Abstract | Publisher info | Download info | Related research | Statistics Huck, Steffen (Royal Holloway)
Kübler, Dorothea (Humboldt University Berlin)
Weibull, Jörgen () (The Research Institute of Industrial Economics)
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This paper deals with the interplay between economic incentives and social norms in firms. We outline a simple model of team production and provide preliminary results on linear incentive schemes in the presence of a social norm that may cause multiple equilibria. The effect of the social norm on the optimal bonus rate is discussed, as well as the effectiveness of temporary changes in the bonus rate as a means to move a firm from a bad to a good equilibrium.
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Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number
565.
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Length: 12 pages
Date of creation: 08 Oct 2001Date of revision:
Handle: RePEc:hhs:iuiwop:0565Contact details of provider: Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden Phone: +46 8 665 4500 Fax: +46 8 665 4599 Email: Web page: http://www.ifn.se/ More information through EDIRC
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Keywords: Social Norms ; Incentives ; Contracts ; Other versions of this item:
Find related papers by JEL classification: D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
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Gerd Muehlheusser & Andreas Roider, 2004.
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Fabio Sabatini, 2005.
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Burkhard Hehenkamp & Oddvar Kaarbøe, 2004.
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