Advanced Search
MyIDEAS: Login to save this paper or follow this series

Equality versus equity bases pay systems and their effects on rational altruism motivation in teams: wicked masked altruism

Contents:

Author Info

  • Javier García Bernal

    ()
    (Departamento de Economía y Dirección de Empresas. Facultad de Ciencias Económicas y Empresariales. Universidad de Zaragoza)

  • Marisa Ramírez Alesón

    (Departamento de Economía y Dirección de Empresas. Facultad de Ciencias Económicas y Empresariales. Universidad de Zaragoza)

Abstract

This paper analyses the design of optimal incentives in teams both with and without rational altruism. The main contribution of the paper is to study the influence of the incentive function on the altruism parameter chosen by team members. We find that optimal incentive is independent of the presence of rational altruism. Secondly, we compare the welfare loss of equal sharing rules versus second best optimal sharing rules (based on equity). Finally, we distinguish between two sources of rational altruism: 1) the strategic component, and 2) an additional component that reflects wicked behavior by some agents, reducing the firm’s efficiency.

Download Info

If 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.
File URL: http://www.dteconz.unizar.es/DT2007-04.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza in its series Documentos de Trabajo with number dt2007-04.

as in new window
Length:
Date of creation: Apr 2007
Date of revision:
Handle: RePEc:zar:wpaper:dt2007-04

Contact details of provider:
Postal: Gran via, 2 50005 Zaragoza
Fax: 976 76 19 96
Web page: http://www.dteconz.unizar.es/
More information through EDIRC

Related research

Keywords: Rational Altruism; incentives in teams; equity based pay system; wicked masked altruism;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:zar:wpaper:dt2007-04. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vicente Pinilla).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.