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).
|Number of pages||24|
|Journal||Japanese Economic Review|
|State||Published - 1 Mar 2013|
ASJC Scopus subject areas
- Economics and Econometrics