Design of Incentive Systems

1. Front Matter

   Pages i-xviii

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2. Introduction

   • Dennis D. Fehrenbacher

   Pages 1-11

3. An Integrative Framework of Influences on Behavior

   • Dennis D. Fehrenbacher

   Pages 13-29

4. Experimental Design

   • Dennis D. Fehrenbacher

   Pages 31-59

5. Formulation of Hypotheses

   • Dennis D. Fehrenbacher

   Pages 61-96

6. Operationalization and Data Analysis Methods

   • Dennis D. Fehrenbacher

   Pages 97-127

7. Findings

   • Dennis D. Fehrenbacher

   Pages 129-185

8. Discussion and Outlook

   • Dennis D. Fehrenbacher

   Pages 187-200

9. Back Matter

   Pages 201-251

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Monetary incentives, as a driving force for human behavior, are the main theme of this book. The primary goals underlying the application of monetary incentive systems in companies are motivating employees to strive for superior productivity in line with the interests of employers, and hiring adequately skilled employees. The first goal refers to incentive effects, the latter to sorting effects. This book introduces important theories and concepts concerning behavior under influence of monetary incentives; it reviews existing economic frameworks and identifies specific contingency variables. Based on an integrative framework of elements influencing incentive and sorting effects, a laboratory experiment is presented including detailed methodological discussion on experimentation and data analysis as well as an extensive presentation of findings and discussion of implications.​

• Decision-making
• Incentive design
• Incentive effects
• Productivity
• Real-effort laboratory experiment
• Sorting effects

• , Institute of Business Administration, Universität Stuttgart, Stuttgart, Germany

  Dennis D. Fehrenbacher

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