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Anti-social behavior in profit and nonprofit organizations

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  • Auriol, Emmanuelle
  • Brilon, Stefanie

Abstract

Two types of intrinsically motivated workers are considered: “good” workers care about the mission of an organization, whereas “bad” workers derive pleasure from destructive behavior. Compared to the case with only good motivated workers, the mission-oriented sector has to resort to higher monitoring to deter bad workers from entering the sector. In equilibrium, bad workers work in the for-profit sector where they behave like “normal” people, while good workers self-select into the mission-oriented sector. In the profit-oriented sector, both monitoring and bonus payments for good behavior increase to control the damage caused by bad workers. The results of the paper are illustrated by examples from child care and the threat posed by pedophiles in this sector.

Suggested Citation

  • Auriol, Emmanuelle & Brilon, Stefanie, 2014. "Anti-social behavior in profit and nonprofit organizations," Journal of Public Economics, Elsevier, vol. 117(C), pages 149-161.
  • Handle: RePEc:eee:pubeco:v:117:y:2014:i:c:p:149-161
    DOI: 10.1016/j.jpubeco.2014.05.006
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    Cited by:

    1. Gani Aldashev & Marco Marini & Thierry Verdier, 2017. "Samaritan Bundles: Inefficient Clustering in NGO Projects," Working Papers 6/17, Sapienza University of Rome, DISS.
    2. Joseph Lanfranchi & Mathieu Narcy, 2012. "Effort and Monetary Incentives in Nonprofit and For-Profit Organizations," Working Papers halshs-00856261, HAL.
    3. repec:eee:eecrev:v:98:y:2017:i:c:p:199-216 is not listed on IDEAS
    4. Justin Mattias Valasek, 2015. "Reforming an Institutional Culture of Corruption: A Model of Motivated Agents and Collective Reputation," CESifo Working Paper Series 5599, CESifo Group Munich.
    5. Guido Friebel & Michael Kosfeld & Gerd Thielmann, 2016. "Trust the Police? Self-Selection of Motivated Agents into the German Police Force," CESifo Working Paper Series 6245, CESifo Group Munich.
    6. Heinz, Matthias & Schumacher, Heiner, 2015. "Signaling cooperation," SAFE Working Paper Series 120, Research Center SAFE - Sustainable Architecture for Finance in Europe, Goethe University Frankfurt.
    7. Heinz, Matthias & Schumacher, Heiner, 2016. "Signaling Cooperation," Annual Conference 2016 (Augsburg): Demographic Change 145648, Verein für Socialpolitik / German Economic Association.
    8. F. Barigozzi & N. Burani, 2016. "Competition Between For-Profit and Non-Profit Firms: Incentives, Workers’ Self-Selection, and Wage Differentials," Working Papers wp1072, Dipartimento Scienze Economiche, Universita' di Bologna.
    9. Valasek, Justin, 2016. "Dynamic reform of public institutions: A model of motivated agents and collective reputation," Discussion Papers, Research Unit: Economics of Change SP II 2015-303r, Social Science Research Center Berlin (WZB).
    10. Gerhards, Leonie, 2015. "The incentive effects of missions—Evidence from experiments with NGO employees and students," European Economic Review, Elsevier, vol. 79(C), pages 252-262.
    11. Valasek, Justin, 2015. "Reforming an institutional culture of corruption: A model of motivated agents and collective reputation," Discussion Papers, Research Unit: Economics of Change SP II 2015-303, Social Science Research Center Berlin (WZB).
    12. Heinz, Matthias & Schumacher, Heiner, 2015. "Signaling Cooperation," CEPR Discussion Papers 10942, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Intrinsic motivation; Incentive contract; Nonprofit; Sabotage; Candidate selection; Catholic Church; Abuse;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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