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Incentives and Anonymity Principle: Crowding Out Toward Users

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Author Info
Patricia Crifo ()
Jean-Louis Rullière ()

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Abstract

In our model, an agent produces an outcome by a costly effort and then distributes it among heterogeneous users. The agent’s payoff is the weighted sum of the users’ shares and the coefficient reflecting their heterogeneity. When the agent neglects users’ heterogeneity the game leads to an anonymous allocation. Otherwise, the equilibrium distribution is non- egalitarian but more efficient. Low performing agents reduce inequality among users by delivering an egalitarian service, while intermediate or high performing agents tend to prefer (but not always) delivering an unequal service, thereby breaking the anonymity principle. Incentives do matter regarding the crowding effect toward users.

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Publisher Info
Paper provided by CESifo GmbH in its series CESifo Working Paper Series with number CESifo Working Paper No. 1316.

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Date of creation: 2004
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Handle: RePEc:ces:ceswps:_1316

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Related research
Keywords: incentives anonymity principle egalitarian tasks allocation principal agent user relationship crowding-out effect

Find related papers by JEL classification:
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises
M50 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - General

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    Other versions:
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  5. George J. Borjas, 2002. "The Wage Structure and the Sorting of Workers into the Public Sector," NBER Working Papers 9313, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Abigail Barr & Magnus Lindelow & Pieter Serneels, 2004. "To Serve The Community Or Oneself: The Public Servant'S Dilemma," Development and Comp Systems 0409035, EconWPA. [Downloadable!]
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  9. Uri Gneezy & Aldo Rustichini, 2004. "Gender and Competition at a Young Age," American Economic Review, American Economic Association, vol. 94(2), pages 377-381, May. [Downloadable!] (restricted)
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