The dark side of team incentives: Experimental evidence on advice quality from financial service professionals
AbstractIn an experiment with professionals from the financial services sector, we investigate the impact of a team incentive scheme on recommendation quality of investment products when advisors benefit from advising lower quality products. Experimental results reveal that, when group affiliation is strong, worse products are recommended significantly more often under team incentives than under individual incentives.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Cologne Graduate School in Management, Economics and Social Sciences in its series Cologne Graduate School Working Paper Series with number 03-13.
Date of creation: 15 Oct 2012
Date of revision: 18 Dec 2012
deception; team incentives; professionals; financial advice; experiment;
Other versions of this item:
- Danilov, Anastasia & Biemann, Torsten & Kring, Thorn & Sliwka, Dirk, 2013. "The dark side of team incentives: Experimental evidence on advice quality from financial service professionals," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 266-272.
- C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-12 (All new papers)
- NEP-CBE-2013-01-12 (Cognitive & Behavioural Economics)
- NEP-CTA-2013-01-12 (Contract Theory & Applications)
- NEP-EXP-2013-01-12 (Experimental Economics)
- NEP-HRM-2013-01-12 (Human Capital & Human Resource Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roman Inderst & Marco Ottaviani, 2009. "Misselling through Agents," American Economic Review, American Economic Association, vol. 99(3), pages 883-908, June.
- Conrads, Julian & Irlenbusch, Bernd & Rilke, Rainer Michael & Walkowitz, Gari, 2011. "Lying and Team Incentives," IZA Discussion Papers 5968, Institute for the Study of Labor (IZA).
- Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
- Cadsby C. Bram & Song Fei & Tapon Francis, 2010.
"Are You Paying Your Employees to Cheat? An Experimental Investigation,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 10(1), pages 1-32, April.
- C. Bram Cadsby & Fei Song & Francis Tapon, 2008. "Are You Paying Your Employees to Cheat? An Experimental Investigation," Working Papers 0810, University of Guelph, Department of Economics and Finance.
- Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
- Vera Popva, 2010. "What renders financial advisors less treacherous? - On commissions and reciprocity -," Jena Economic Research Papers 2010-036, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Francesca Gino & Lamar Pierce, 2010. "Lying to Level the Playing Field: Why People May Dishonestly Help or Hurt Others to Create Equity," Journal of Business Ethics, Springer, vol. 95(1), pages 89-103, September.
- Matthias Sutter, 2007.
"Deception through telling the truth?! Experimental evidence from individuals and teams,"
2007-26, Faculty of Economics and Statistics, University of Innsbruck.
- Matthias Sutter, 2009. "Deception Through Telling the Truth?! Experimental Evidence From Individuals and Teams," Economic Journal, Royal Economic Society, vol. 119(534), pages 47-60, 01.
- Vera Angelova & Tobias Regner, 2012. "Do voluntary payments to advisors improve the quality of financial advice? An experimental sender-receiver game," Jena Economic Research Papers 2012-011, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Denis, David J. & Hanouna, Paul & Sarin, Atulya, 2006. "Is there a dark side to incentive compensation?," Journal of Corporate Finance, Elsevier, vol. 12(3), pages 467-488, June.
- Rajna Gibson & Carmen Tanner & Alexander F. Wagner, 2013. "Preferences for Truthfulness: Heterogeneity among and within Individuals," American Economic Review, American Economic Association, vol. 103(1), pages 532-48, February.
- Carpenter, Jeffrey P. & Burks, Stephen V. & Verhoogen, Eric, 2004. "Comparing Students to Workers: The Effects of Social Framing on Behavior in Distribution Games," IZA Discussion Papers 1341, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Kusterer).
If references are entirely missing, you can add them using this form.