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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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    2. Joseph Lanfranchi & Mathieu Narcy, 2012. "Effort and Monetary Incentives in Nonprofit and For-Profit Organizations," Working Papers halshs-00856261, HAL.
    3. Macho-Stadler, Inés & Pérez-Castrillo, David & Quérou, Nicolas, 2021. "Goal-oriented agents in a market," Journal of Economic Psychology, Elsevier, vol. 84(C).
    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.
    5. Verdier, Thierry & Aldashev, Gani & Jaimovich, Esteban, 2020. "The Dark Side of Transparency: Mission Variety and Industry Equilibrium in Decentralized Public Good Provision," CEPR Discussion Papers 15030, C.E.P.R. Discussion Papers.
    6. Heinz, Matthias & Schumacher, Heiner, 2017. "Signaling cooperation," European Economic Review, Elsevier, vol. 98(C), pages 199-216.
    7. Bauer, Kevin & Kosfeld, Michael & von Siemens, Ferdinand, 2021. "Incentives, Self-Selection, and Coordination of Motivated Agents for the Production of Social Goods," IZA Discussion Papers 14595, Institute of Labor Economics (IZA).
    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, 2018. "Dynamic reform of public institutions: A model of motivated agents and collective reputation," Journal of Public Economics, Elsevier, vol. 168(C), pages 94-108.
    10. Ines A. Ferreira & Sam Jones & Jorge Mouco & Ricardo Santos, 2021. "The determinants of occupational sorting: Evidence from Mozambique," WIDER Working Paper Series wp-2021-83, World Institute for Development Economic Research (UNU-WIDER).
    11. 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.
    12. Guido Friebel & Michael Kosfeld & Gerd Thielmann, 2019. "Trust the Police? Self-Selection of Motivated Agents into the German Police Force," American Economic Journal: Microeconomics, American Economic Association, vol. 11(4), pages 59-78, November.
    13. Ester Manna, 2023. "Bad NGOs? Competition in the market for donations and workers' misconduct," UB School of Economics Working Papers 2023/457, University of Barcelona School of Economics.
    14. repec:bla:annpce:v:89:y:2018:i:1:p:157-174 is not listed on IDEAS
    15. Hoffmann, Lisa, 2023. "(Ch)eating for oneself or cheating for others? Experimental evidence from young politicians and students in Kenya," OSF Preprints xnez5, Center for Open Science.
    16. 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, WZB Berlin Social Science Center.
    17. Barigozzi, Francesca & Burani, Nadia, 2019. "Competition for talent when firms' mission matters," Games and Economic Behavior, Elsevier, vol. 116(C), pages 128-151.

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    More about this item

    Keywords

    Intrinsic motivation; Incentive contract; Nonprofit; Sabotage; Candidate selection; Catholic Church; Abuse;
    All these keywords.

    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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