Search results
Results from the WOW.Com Content Network
Incentives are most studied in the area of personnel economics where economic analysts, such as those who take part in human resources management practices, focus on how firms make employees more motivated, through pay and career concerns, compensation and performance evaluation, to motivate employees and best achieve the firms' desired ...
The phrase "perverse incentive" is often used in economics to ... Borker continued writing toxic replies for a decade despite serving two separate sentences in U.S ...
In game theory and economics, a mechanism is called incentive-compatible (IC) [1]: 415 if every participant can achieve their own best outcome by reporting their true preferences. [ 1 ] : 225 [ 2 ] For example, there is incentive compatibility if high-risk clients are better off in identifying themselves as high-risk to insurance firms , who ...
In economics, a moral hazard is a situation where an economic actor has an incentive to increase its exposure to risk because it does not bear the full costs of that risk. . For example, when a corporation is insured, it may take on higher risk knowing that its insurance will pay the associated co
In organizational psychology, economics and business an incentive system denotes a structure motivating individuals as part of an organization to act in the interest of the organization. [ 1 ] A fundamental requirement of creating a working incentive system for individuals and the organization is understanding human behavior and motivators of ...
Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
The Becker–DeGroot–Marschak method (BDM), named after Gordon M. Becker, Morris H. DeGroot and Jacob Marschak for the 1964 Behavioral Science paper, "Measuring Utility by a Single-Response Sequential Method" is an incentive-compatible procedure used in experimental economics to measure willingness to pay (WTP).
Also suggest adding these references to provide resources on economic theory and empirical evidence on the topic. - Canice Prendergast, "The Provision of Incentives Within Firms." Journal of Economic Literature 37(1), pp. 7-63, 1999. - Edward Lazear & Michael Gibbs. Personnel Economics in Practice, 3rd ed., Chapters 9-12. Wiley, 2014.