Group rewards and individual sanctions, applied to environmental policy

Speaker:  Bouwe R. Dijkstra - School of Economics, University of Nottingham
  Monday, November 10, 2008 at 1:00 PM Biblioteca DSE

 

We examine an incentive scheme for a group of agents, where all agents are rewarded if

the group meets its target. If the group does not meet its target, only the agents that meet

their individual target are rewarded. This incentive scheme is applied in the UK Climate

Change Agreements feature this incentive scheme. There is only a difference in outcome

between group and individual rewards if performance is stochastic. Group rewards lead

to lower effort than individual rewards if targets are realistic.

Documents
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Paper  pdfpdf (it, 423 KB, 09/10/08)

Programme Director
Angelo Zago

Publication date
October 9, 2008

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