Title

Prizes versus Wages with Envy and Pride

Document Type

Discussion Paper

Publication Date

11-1-2011

CFDP Number

1835

CFDP Pages

26

Abstract

We show that if agents are risk neutral, prizes outperform wages if and only if 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).

This document is currently not available here.

Share

COinS