Document Type
Discussion Paper
Publication Date
10-1-2005
CFDP Number
1537
CFDP Pages
25
Abstract
We show that if agents are risk neutral, prizes outperform wages when there is sufficient pride and envy relative to the noisiness of performance. If agents are risk averse, prizes are a necessary supplement to wages (as bonuses).
Recommended Citation
Dubey, Pradeep; Geanakoplos, John; and Haimanko, Ori, "Prizes versus Wages with Envy and Pride" (2005). Cowles Foundation Discussion Papers. 1824.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1824