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  • 13 Aug 2012
  • Research & Ideas

When Good Incentives Lead to Bad Decisions

Among the culprits contributing to the recent financial crisis were bank loan officers who approved mortgage loans that were doomed to fail. Many of these frontline workers were motivated by bonuses and other incentives to approve... View Details
Keywords: by Carmen Nobel; Banking
  • February 10, 2015
  • Article

Nonprice incentives and Energy Conservation

By: Omar Isaac Asensio and Magali A Delmas
We investigate the effectiveness of nonprice incentives to motivate conservation behavior. We test whether tailored information about environmental and health damages produces behavior change in the residential electricity sector. In a randomized controlled trial with... View Details
Keywords: Motivation and Incentives; Energy Conservation; Environmental Sustainability; Pollutants; Health Disorders; Knowledge Dissemination; Behavior
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Asensio, Omar Isaac, and Magali A Delmas. "Nonprice incentives and Energy Conservation." Proceedings of the National Academy of Sciences 112, no. 6 (February 10, 2015): E510–E515.
  • Article

Trust and Incentives in Agency

By: Ramon Casadesus-Masanell and Daniel F Spulber
Contracts between a principal and an agent are not formed in a vacuum. Although formal contracts between a principal and an agent contain explicit incentives for performance, the relationship between a principal and an agent also involves implicit incentives. Three... View Details
Keywords: Trust; Motivation and Incentives; Agency Theory; Contracts; Market Transactions; Performance; Relationships; Societal Protocols; Legal Liability; Cost
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Casadesus-Masanell, Ramon, and Daniel F Spulber. "Trust and Incentives in Agency." Southern California Interdisciplinary Law Journal 15, no. 1 (Fall 2005): 45–104.
  • March 2003
  • Supplement

Incentive Games, The

By: Jason R. Barro, Kathleen L. McGinn, Arleen Cavanaugh and Aaron Zimmerman
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Barro, Jason R., Kathleen L. McGinn, Arleen Cavanaugh, and Aaron Zimmerman. "Incentive Games, The." Harvard Business School Spreadsheet Supplement 903-703, March 2003.
  • January 1990 (Revised November 1990)
  • Background Note

Note on Compensation and Incentive Systems

Provides a brief analysis of issues in the design of an effective compensation system, with particular emphasis on incentives. Provides an analytic framework for thinking about compensation. Topics covered include the composition of the pay package, fringe benefits,... View Details
Keywords: Motivation and Incentives; Compensation and Benefits
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Gibbs, Michael J. "Note on Compensation and Incentive Systems." Harvard Business School Background Note 490-048, January 1990. (Revised November 1990.)
  • November 1993
  • Article

Leadership Style and Incentives

By: J. J. Rotemberg and Garth Saloner
Keywords: Leadership; Motivation and Incentives
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Rotemberg, J. J., and Garth Saloner. "Leadership Style and Incentives." Management Science 39, no. 11 (November 1993): 1299–1318.
  • Article

On Coalition Incentive Compatibility

By: Jerry R. Green and Jean-Jacques Laffont
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Green, Jerry R., and Jean-Jacques Laffont. "On Coalition Incentive Compatibility." Review of Economic Studies 46, no. 2 (April 1979): 243–254.
  • June 1982 (Revised May 1990)
  • Exercise

Promotion Incentive Allocation Exercise

By: John A. Quelch
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Quelch, John A. "Promotion Incentive Allocation Exercise." Harvard Business School Exercise 582-120, June 1982. (Revised May 1990.)
  • Article

Matching Firms, Managers, and Incentives

By: Oriana Bandiera, Luigi Guiso, Andrea Prat and Raffaella Sadun
We combine unique administrative and survey data to study the match between firms and managers. The data include manager characteristics, firm characteristics, detailed measures of managerial practices, and outcomes for the firm and the manager. A parsimonious model of... View Details
Keywords: Motivation and Incentives; Talent and Talent Management; Organizations; Management Teams
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Bandiera, Oriana, Luigi Guiso, Andrea Prat, and Raffaella Sadun. "Matching Firms, Managers, and Incentives." Journal of Labor Economics 33, no. 3 (July 2015): 623–681.
  • February 1999 (Revised October 1999)
  • Background Note

Note on Physician Compensation and Financial Incentives

By: Richard M.J. Bohmer and Melanie M Harshbarger
A review of the use and effectiveness of financial incentives in changing physician behavior. View Details
Keywords: Change; Finance; Compensation and Benefits; Performance Effectiveness; Behavior; Motivation and Incentives
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Bohmer, Richard M.J., and Melanie M Harshbarger. "Note on Physician Compensation and Financial Incentives." Harvard Business School Background Note 699-151, February 1999. (Revised October 1999.)
  • August 2014
  • Article

Incentives in a Stage-Gate Process

By: Raul O. Chao, Kenneth C. Lichtendahl and Yael Grushka-Cockayne
Many large organizations use a stage‐gate process to manage new product development projects. In a typical stage‐gate process project managers learn about potential ideas from research and exert effort in development while senior executives make intervening go/no‐go... View Details
Keywords: Stage-Gate Process; Production; Operations; Product Development; Innovation and Invention
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Chao, Raul O., Kenneth C. Lichtendahl, and Yael Grushka-Cockayne. "Incentives in a Stage-Gate Process." Production and Operations Management 23, no. 8 (August 2014): 1286–1298.
  • 09 Jun 2003
  • Research & Ideas

Incentives and Operational Excellence

Whether you're running a major medical supply company or a hole-in-the-wall video store, chances are you know how common operational problems are. If you are the medical supplier, for instance, you probably deal with a hospital group that would like more and more... View Details
Keywords: by Martha Lagace
  • May 2014
  • Article

Investment Incentives in Labor Market Matching

By: John William Hatfield, Fuhito Kojima and Scott Duke Kominers
We provide an illustration of how the design of labor market clearing mechanisms can affect incentives for human capital acquisition. Specifically, we extend the labor market matching model (with discrete transfers) of Kelso and Crawford (1982) to incorporate the... View Details
Keywords: Human Capital; Marketplace Matching
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Hatfield, John William, Fuhito Kojima, and Scott Duke Kominers. "Investment Incentives in Labor Market Matching." American Economic Review: Papers and Proceedings 104, no. 5 (May 2014): 436–441.
  • January 2002
  • Background Note

A Note on Incentives in the NFL

By: Brian J. Hall and Jonathan Lim
This case describes compensation and incentive issues in one of the major U.S. professional sports leagues, the National Football League (NFL). It first provides some background information on the labor market for players and the salary cap and then describes incentive... View Details
Keywords: Compensation and Benefits; Labor and Management Relations; Conflict and Resolution; Motivation and Incentives; Sports; Sports Industry; United States
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Hall, Brian J., and Jonathan Lim. "A Note on Incentives in the NFL." Harvard Business School Background Note 902-129, January 2002.
  • 2016
  • Working Paper

Infrastructure, Incentives and Institutions

By: Nava Ashraf, Edward L. Glaeser and Giacomo A.M. Ponzetto
Cities generate negative, as well as positive, externalities; addressing those externalities requires both infrastructure and institutions. Providing clean water and removing refuse requires water and sewer pipes, but the urban poor are often unwilling to pay for the... View Details
Keywords: Motivation and Incentives; Urban Development; Organizations; City; Infrastructure; Zambia
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Ashraf, Nava, Edward L. Glaeser, and Giacomo A.M. Ponzetto. "Infrastructure, Incentives and Institutions." NBER Working Paper Series, No. 21910, January 2016.
  • November 2001 (Revised April 2003)
  • Case

Camp Dresser & McKee: Getting Incentives Right

By: Ashish Nanda
"If you try to use money to motivate behavior, you are in a powerful and dangerous place, especially with engineers and scientists," remarked Tom Furman, CEO of Camp Dresser & McKee, Inc. (CDM), a consulting environmental engineering firm. Historically, CDM had... View Details
Keywords: Motivation and Incentives; Compensation and Benefits; Service Industry
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Nanda, Ashish, and M. Julia Prats. "Camp Dresser & McKee: Getting Incentives Right." Harvard Business School Case 902-122, November 2001. (Revised April 2003.)
  • October 1994 (Revised April 1995)
  • Case

Visionary Design Systems: Are Incentives Enough?

By: George P. Baker III and Karin B Monsler
A compensation case about Visionary Design Systems (VDS), a small, high-tech full service systems integration firm based in Silicon Valley with eleven offices throughout the country. All employees, including engineers, administrators, and receptionists, received a... View Details
Keywords: Decision Making; Cost vs Benefits; Compensation and Benefits; Employee Stock Ownership Plan; San Francisco
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Baker, George P., III, and Karin B Monsler. "Visionary Design Systems: Are Incentives Enough?" Harvard Business School Case 495-011, October 1994. (Revised April 1995.)
  • 2020
  • Chapter

Government Incentives for Entrepreneurship

By: Josh Lerner
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Lerner, Josh. "Government Incentives for Entrepreneurship." Chap. 4 in Global Innovation Index 2020: Who will Finance Innovation? 13th edition, edited by Soumitra Dutta, Bruno Lanvin, and Sacha Wunsch-Vincent. Cornell University, 2020. Electronic.
  • 2003
  • Other Unpublished Work

Volatility, Noise, and Incentives

By: George P. Baker and Bjorn Jorgensen
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Baker, George P., and Bjorn Jorgensen. "Volatility, Noise, and Incentives." March 2003.
  • 1987
  • Chapter

Limited Communication and Incentive Compatibility

By: Jerry R. Green and Jean-Jacques Laffont
Citation
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Green, Jerry R., and Jean-Jacques Laffont. "Limited Communication and Incentive Compatibility." In Information, Incentives and Economic Mechanisms: Essays in Honor of Leonid Hurwicz, edited by Theodore Groves, Roy Radner, and Stanley Reiter. Minneapolis: University of Minnesota Press, 1987.
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