An Empirical Investigation of Gaming Responses to Explicit Performance Incentives
AbstractThis article studies a particular kind of gaming responses to explicit incentives in a large government organization. The gaming responses we consider occur when agents strategically report their performance outcomes to maximize their awards. An important contribution of this work is to examine whether this behavior diverts resources (e.g., agents' time) from productive activities or whether it simply reflects an accounting phenomenon. We evaluate the efficiency impact of the behavior we identify and find that it has a negative impact on the true goal of the organization.
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Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Labor Economics.
Volume (Year): 22 (2004)
Issue (Month): 1 (January)
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Web page: http://www.journals.uchicago.edu/JOLE/
Other versions of this item:
- Courty, Pascal & Marschke, Gerald, 2002. "An Empirical Investigation of Gaming Responses to Explicit Performance Incentives," CEPR Discussion Papers 3164, C.E.P.R. Discussion Papers.
- Gerald Marschke & Pascal Courty, 2002. "An Empirical Investigation of Gaming Responses to Explicit Performance Incentives," Discussion Papers 02-06, University at Albany, SUNY, Department of Economics.
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
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