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Can I read Performance Targets, Effort and Risk-taking on EtoBox?
Performance Targets, Effort and Risk-taking by Matthew D. Rablen is a Social Sciences article available to read on EtoBox.
What is Performance Targets, Effort and Risk-taking about?
Growing economic and psychological evidence documents effects of target setting on levels of effort and risk-taking, even in the absence of a monetary reward for attaining the target. I explore a principal-agent environment in which the principal sets the agent a performance target, and the agent's intrinsic motivation to work is influenced by their performance relative to the target. When the agent has prospect theory preferences relative to the target I show that a performance target can induce greater effort, but, when set too high, it eventually induces lower effort. Also, the agent's preferences for risk-taking hinge on whether the target is set above or below expected output. I find that the principal's optimal target exceeds expected output.
Who reads Performance Targets, Effort and Risk-taking?
It is typically read by researchers, students, and practitioners in Social Sciences.
- Author
- Matthew D. Rablen
- Publisher
- Elsevier Science; Elsevier ; North-Holland Publ Co; Elsevier BV (ISSN 0167-4870)
- Published
- 2010
- Language
- EN
- Field
- Social Sciences