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- Wait, Andrew, et al. Show all 2 Author
- Economics letters 2016 v.141 pp. 91-94
- economics; production technology
- ... Incentive reversal (IR) is when higher rewards induce some agents to reduce their effort (Winter 2009). We show that IR can hold for all agents when: there is an improvement in production technology; and rewards are based on team output. Whilst IR requires at least one worker’s marginal return to be decreasing in team productivity when agents invest simultaneously, this is not necessary with seque ...
- Wait, Andrew, et al. Show all 3 Authors
- Economics letters 2016 v.143 pp. 80-83
- ... Assets may be complementary–producing more return together–but substitute at the margin–generating lower marginal return when assets are together, leading agents to underinvest. When the effort effect dominates the synergy effect, merging complementary assets may not be efficient. ...