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Incentives in Managerial Compensation: A Survey of Experimental Research. (Draft Paper)

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  • Alessandro Rossi

Abstract

The issue of designing effective managerial incentives has recently gained considerable attention in both theoretical analysis and business practices. Despite the importance of the theoretical achievements, to date little attempt has been made to test the major theoretical hypotheses empirically. More recently, the debate has been fuelled by the development of economic experimental studies explicitly designed to shed light on how real decision makers behave in such settings. The aim of this paper is to provide a comprehensive survey of experimental contributions to mechanism and incentive design issues and to offer some suggestions for future research.

Suggested Citation

  • Alessandro Rossi, 1999. "Incentives in Managerial Compensation: A Survey of Experimental Research. (Draft Paper)," ROCK Working Papers 003, Department of Computer and Management Sciences, University of Trento, Italy, revised 12 Jun 2008.
  • Handle: RePEc:trt:rockwp:003
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    Cited by:

    1. Alessandro Rossi & Massimo Warglien, 2000. "An Experimental Investigation of Fairness and Reciprocal Behavior in a Simple Principal-Multiagent Relationship (Updated version of the older "Fairness in Hierarchical Triangles: an Experimental ," ROCK Working Papers 009, Department of Computer and Management Sciences, University of Trento, Italy, revised 12 Jun 2008.
    2. Alessandro Rossi & Massimo Warglien, 2001. "An Experimental Investigation of Fairness and Reciprocal Behavior in a Triangular Principal'-Multiagent Relationship," Quaderni DISA 046, Department of Computer and Management Sciences, University of Trento, Italy, revised 29 Jun 2003.
    3. Alessandro Rossi, 2001. "The Effective Design of Managerial Incentive Systems:Combining Theoretical Principles and Practical Trade'-offs," Quaderni DISA 047, Department of Computer and Management Sciences, University of Trento, Italy, revised 29 Jun 2003.

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