Social and Behavioral Sciences Commons^™

Justice, Inclusion, And Incentives, Ghislain Herman Demeze-Jouatsa, Roland Pongou, Jean-Baptiste Tondji

Economics and Finance Faculty Publications and Presentations

How does justice affect individual incentives and efficiency in a political economy? We show that elementary principles of distributive justice guarantee the existence of a self-enforcing contract whereby agents non-cooperatively choose their inputs and derive utility from their pay. Chief among these principles is that your pay should not depend on your name, and a more productive individual should not earn less. We generalize our analysis to incorporate inclusivity, ensuring basic pay to unproductive agents, implemented through progressive taxation and redistribution. Our findings show that without redistribution, any self-enforcing agreement may be inefficient, but a minimal level of redistribution guarantees …

Productivity Within Groups: An Analysis Of Shirking In High School Cross Country Competitions, Nathan J. Ashby

Hunt Institute Working Paper Series

Using enrollment based classification realignments for high school cross country running competitions in the state of Texas, we analyze the impact of changes in the intensity of competition on individual and team performance. The analysis demonstrates significant improvement in the performance of teams promoted to more competitive classifications in the boys’ division but does not yield similar results in the girls’ division. We also analyze the impact on runners according to their rankings within teams and find improvements to be greater for runners ranking lower relative to team leaders driven by heterogeneity in motivation based on ability or the sequential …

Revitalize Wakefield: Charting A Course For Growth, Bannon T. Luckert

Master of Urban and Regional Planning Capstone Projects

This plan focuses on discovering the objectives and aspirations of residents and merchants to formulate a revitalization strategy comprising actionable steps that will contribute to the flourishing of a rural downtown. By leveraging Wakefield's rich history and existing assets, this plan aims to help realize the vision of revitalizing Wakefield.

Tackling Misperceptions About Immigrants With Fact-Checking Interventions: A Randomized Survey Experiment, Syngjoo Choi, Chung-Yoon Choi, Kim

Research Collection School Of Economics

We conduct a randomized online survey experiment to study the impact of fact-checking offers and financial incentives on misperceptions about immigrants. We find that natives overestimate the number of immigrants and the social and economic costs of immigration. Offering a free check of the factual information about immigrants reduces these misperceptions; it becomes more effective when combined with financial incentives. However, more than half of the participants never took up offers to check factual information. Using a model of information search with limited attention, we identify the presence of non-negligible costs of information search and processing, which limits the effectiveness …

Entrepreneurial Firms And Incentives: Pre-Covid-19 Landscape And Pandemic Recovery Responses, Darrene Hackler

External Papers and Reports

No abstract provided.

Decisions, Decisions, Decisions: Summer Activities For Anna!, David Henderson, John Marsh

Business Faculty Research

Anna Swanson will soon be home for the summer. Her parents John and Carol are trying to figure out the best way to keep Anna busy for the summer using a $400 gift from her grandmother. Given their budget, John and Carol must weigh the cost, benefits, and break-even points of options like a YMCA pool pass, amusement park pass, or various summer camps and try to find the best option or options that will keep young Anna busy during the summer.

Attitudes Toward Payment For Research Participation: Results From A U.S. Survey Of People Living With Hiv, Andrea N. Polonijo, Karine Dubé, Jerome T. Galea, Karah Yeona Greene, Jeff Taylor, Christopher Christensen, Brandon Brown

Social Work Faculty Publications

Little is known about how payment affects individuals' decisions to participate in HIV research. Using data from a U.S. survey of people living with HIV (N = 292), we examined potential research participants’ attitudes toward payment, perceived study risk based on payment amount, and preferred payment forms, and how these factors vary by sociodemographic characteristics. Most respondents agreed people should be paid for HIV research participation (96%) and said payment would shape their research participation decisions (80%). Men, less formally educated individuals, and members of some minoritized racial-ethnic groups were less likely to be willing to participate in research …

How Responsive Is Saudi New Vehicle Fleet Fuel Economy To Fuel-And Vehicle-Price Policy Levers?, Tamara L. Sheldon, Rubal Dua

Faculty Publications

This paper investigates the drivers of recent improvements in Saudi Arabia's fleet fuel economy for new vehicles including passenger cars and light-duty trucks. Vehicle choice models are estimated using both aggregate new vehicle sales data and disaggregate new vehicle buyer survey data. The estimated models are used to simulate counterfactual policy scenarios. Simulation results suggest that the Saudi gasoline price elasticity of demand for new vehicle fuel economy decreased slightly over recent years, but it is still more elastic than that of the United States. Moreover, the increase in domestic gasoline prices between 2014 and 2016 accounted for 42% of …

Federal Student Loan Servicing Accountability And Incentives In Contracts, Rajeev Darolia, Andrew Sullivan

Institute for the Study of Free Enterprise Working Papers

Student loan servicers play a critical and underappreciated role in federal student loan programs. The federal government contracts out to servicers an array of many of the most critical functions related to student loan repayment, including account management, payment processing, and the provision of information about payment plans and solutions for distressed borrowers. In fact, most borrowers’ interactions with federal student loan repayment are almost exclusively with their servicer. We aim to improve upon the scarce research literature about federal student loan servicers by exploring the complicated set of measures that determine how servicers are compensated for servicing each debtor …

An Examination Of Best Practices For Survey Research With Agricultural Producers, Edem Avemegah, Wei Gu, Abdelrahim Abulbasher, Kristen Koci, Ayorinde Ogunyiola, Joyce Edful, Shuang Li, Kylie Barington, Tong Wang, Deepthi Kolady, Lora Perkins, A. Joshua Leffler, Péter Kovács, Jason D. Clark, David E. Clay, Jessica Ulrich-Schad

Sociology, Social Work and Anthropology Faculty Publications

To improve the economic and environmental sustainability of agriculture, information is needed on how to target research, teaching, and outreach programs. However, conducting survey research in general, and with agricultural producers specifically, is increasingly challenging given issues such as declining response rates and limited resources. While studies examining the best practices for promoting higher response rates exist, few focus explicitly on agricultural producers. In three separate surveys conducted with agricultural producers in South Dakota in 2018 and 2019, we included experiments testing how token pre-incentives, a research partnership, and response mode options impacted response rates. We also examined how sample …

The Aftermath Of The Pandemic Recession: The Role Of Economic Development Policy, Timothy J. Bartik

Presentations

No abstract provided.

Health Is Wealth: The Correlation Of Wellness Programs & Productivity In Canada And The U.S., Madeline Wert

Business and Economics Summer Fellows

Does health impact the productivity of workers? Are there differences between the U.S. and Canada? Firms both in Canada and the U.S. deal with issues of presenteeism and absenteeism. Presenteeism is when an employee shows up to work but they are distracted by their own or a family member’s health issue. One response to reduce presenteeism and absenteeism are workplace wellness programs. Workplace wellness programs are facilitated programs by a firm to promote the health and wellbeing of their employees, which benefits the employer and the employees. There are additional incentives for U.S. employers to implement workplace wellness programs as …

Incentivized Learning And Libraries: A Comparative Study Of Summer Reading Programs In Connecticut, Andrew Morrison

Honors Scholar Theses

With digital forms of entertainment and media more inescapable than ever, it has become increasingly difficult to encourage children and teens to read. Simultaneously, despite an overwhelming amount of literature demonstrating the educational benefits of reading, especially as a necessity in the summer between academic years, library budgets are shrinking as federal funding nears its end. How do libraries promote summer reading amidst declining interest and decreased funding? Using data from public libraries across Connecticut, this paper investigates how libraries are adapting their children's summer reading programs to a changing landscape, how programs are designed to incentivize reading without eliminating …

The Effects Of Individual Differences On Employment Incentives, Andrew J. Laginess

FIU Electronic Theses and Dissertations

This dissertation sought to examine the interaction between employment incentives and various individual differences. The main objectives were to create a taxonomy of incentives, explore how personal characteristics influence individuals’ attraction to different types of incentives, and shed light on how individual differences affect preferences for incentive systems that are tied to performance versus those that are independent of performance. Four studies were conducted to achieve those objectives, utilizing expert ratings and data from over 800 undergraduate students. A preliminary categorization system with 14 types of incentives was developed, which served as a framework for the subsequent exploration of incentive–individual …

Regulatory Abdication In Practice, Cary Coglianese

All Faculty Scholarship

“Meta-regulation” refers to deliberate efforts to induce private firms to create their own internal regulations—a regulatory strategy sometimes referred to as “management-based regulation” or even “regulation of self-regulation.” Meta-regulation is often presented as a flexible alternative to traditional “command-and-control” regulation. But does meta-regulation actually work? In her recent book, Meta-Regulation in Practice: Beyond Normative Views of Morality and Rationality, Fiona Simon purports to offer a critique of meta-regulation based on an extended case study of the often-feckless process of electricity regulatory reform undertaken in Australia in the early part of this century. Yet neither Simon’s case study nor her book …

Lessons From The American Federal-State Unemployment Insurance System For A European Unemployment Benefits System, Christopher J. O'Leary, Burt S. Barnow, Karolien Lenaerts

Upjohn Institute Working Papers

The federal-state system of unemployment insurance (UI) in the United States was established by the Social Security Act of 1935 during the Great Depression. Under the program, states provide temporary partial wage replacement to involuntarily unemployed workers with significant labor force attachment. The federal government induced states to establish UI programs through two means: 1) a uniform federal tax imposed on employer payrolls, with a 90 percent reduction granted in states operating approved UI programs, and 2) grants to states to administer their programs. The system has evolved into a collection of separate state programs adapted to different regional, economic, …

Working Too Much For Too Little: Stochastic Rewards Cause Work Addiction, Brice Corgnet, Simon Gaechter, Roberto Hernán González

ESI Working Papers

People are generally assumed to shy away from activities generating stochastic rewards, thus re-quiring extra compensation for handling any additional risk. In contrast with this view, neurosci-ence research with animals has shown that stochastic rewards may act as a powerful motivator. Applying these ideas to the study of work addiction in humans, and using a new experimental paradigm, we demonstrate how stochastic rewards may lead people to continue working on a re-petitive and effortful task even after monetary compensation becomes saliently negligible. In line with our hypotheses, we show that persistence on the work task is especially pronounced when the …

Rethinking State Economic Development Strategies: Or, How To Maximize Benefits For State Residents’ Earnings Per Capita, Timothy J. Bartik

Presentations

No abstract provided.

Labor Contracts, Gift-Exchange And Reference Wages: Your Gift Need Not Be Mine!, Hernán Bejerano, Brice Corgnet, Joaquín Gómez-Miñambres

ESI Working Papers

We extend Akerlof’s (1982) gift-exchange model to the case in which reference wages respond to changes in the work environment such as those related to unemployment benefits or workers’ productivity levels. Our model shows that these changes spur disagreements between workers and employers regarding the value of the reference wage. These disagreements tend to weaken the gift-exchange relationship thus reducing production levels and wages. We find support for these predictions in a controlled, yet realistic, workplace environment. Our work also sheds light on several stylized facts regarding employment relationships such as the increased intensity of labor conflicts when economic conditions …

Give Me A Challenge Or Give Me A Raise, Aleksandr Alekseev

ESI Working Papers

I study the effect of task difficulty on workers' effort and compare it to the effect of monetary rewards in an incentivized lab experiment. I find that task difficulty has an inverse-U effect on effort, and that this effect is quantitatively large when compared to the effect of conditional monetary rewards. Difficulty acts as a mediator of monetary rewards: conditional rewards are most effective at the intermediate or high levels of difficulty. I show that the inverse-U pattern of effort response to difficulty is not consistent with the Expected Utility model but is consistent with the Rank-Dependent Utility model that …

Improving Student Performance Through Loss Aversion, Ben O. Smith, Rebekah Shrader, Dustin R. White, Jadrian J. Wooten, Steve Nath, Michael O'Hara, Nan Xu, Robert Rosenman

Economics Faculty Publications

Framing an outcome as a loss causes individuals to expend extra effort to avoid that outcome (Tversky & Kahneman, 1991). Since classroom performance is a function of student effort in search of a higher grade, we seek to use loss aversion to encourage student effort. This field quasi-experiment endows students with all of the points in the course upfront, then deducts points for each error throughout the semester. Exploiting two course sequences in the business school of a Midwestern university, a control for domain-specific knowledge, this study examines the impact of loss aversion when controlling for the student’s knowledge in …

How Liability Insurers Protect Patients And Improve Safety, Tom Baker, Charles Silver

All Faculty Scholarship

Forty years after the publication of the first systematic study of adverse medical events, there is greater access to information about adverse medical events and increasingly widespread acceptance of the view that patient safety requires more than vigilance by well-intentioned medical professionals. In this essay, we describe some of the ways that medical liability insurance organizations contributed to this transformation, and we catalog the roles that those organizations play in promoting patient safety today. Whether liability insurance in fact discourages providers from improving safety or encourages them to protect patients from avoidable harms is an empirical question that a survey …

Striking A Balance: A National Assessment Of Economic Development Incentives, Mary Donegan, T. William Lester, Nichola Lowe

Upjohn Institute Working Papers

The use of incentive packages has intensified as local governments compete for new plants and corporate relocations, and as private firms increasingly demand a deal. While incentives promise jobs and tax revenue, scholars and practitioners criticize their high cost and limited accountability. Through a comparison of matched establishments, this paper explores how governmental incentive-granting strategy impacts incentive performance. We examine the overall impact of incentives and whether incentives granted to smaller firms perform better. Using economic development budget data, we also assess the state’s overall approach to economic development to determine which strategies are prioritized through funding. By showing that …

How Do Nascent Social Entrepreneurs Respond To Rewards? A Field Experiment On Motivations In A Grant Competition, Ina Ganguli, Marieke Huysentruyt, Chloé Le Coq

Economics Department Working Paper Series

We conducted a field experiment to identify the causal effect of extrinsic reward cues on the sorting and performance of nascent social entrepreneurs. The experiment, carried out with one of the United Kingdom’s largest support agencies for social entrepreneurs, encouraged 431 nascent social entrepreneurs to submit a full application for a grant competition that provides cash and in-kind mentoring through a one-time mailing sent by the agency. The applicants were randomly assigned to one of three groups: one group received a standard mailing that emphasized the intrinsic incentives of the program, or the opportunity to do good (Social treatment), and …

Feasibility And Acceptability Of Two Incentive-Based Implementation Strategies For Mental Health Therapists Implementing Cognitive-Behavioral Therapy: A Pilot Study To Inform A Randomized Controlled Trial, Nathaniel J. Williams

Social Work Faculty Publications and Presentations

Background: Informed by our prior work indicating that therapists do not feel recognized or rewarded for implementation of evidence-based practices, we tested the feasibility and acceptability of two incentive-based implementation strategies that seek to improve therapist adherence to cognitive-behavioral therapy for youth, an evidence-based practice.

Methods: This study was conducted over 6 weeks in two community mental health agencies with therapists (n = 11) and leaders (n = 4). Therapists were randomized to receive either a financial or social incentive if they achieved a predetermined criterion on adherence to cognitive-behavioral therapy. In the first intervention period (block 1; …

Loss Aversion And The Quantity-Quality Tradeoff, Jared Rubin, Anya Samek, Roman M. Sheremeta

ESI Working Papers

Firms face an optimization problem that requires a maximal quantity output given a quality constraint. But how do firms incentivize quantity and quality to meet these dual goals, and what role do behavioral factors, such as loss aversion, play in the tradeoffs workers face? We address these questions with a theoretical model and an experiment in which participants are paid for both quantity and quality of a real effort task. Consistent with basic economic theory, higher quality incentives encourage participants to shift their attention from quantity to quality. However, we also find that loss averse participants shift their attention from …

A Reexamination Of “The Hidden Return To Incentives”, Jing Davis, Steven Schwartz, Richard Young

Economics Faculty Articles and Research

Prior literature has observed a “hidden return to incentives” where principals receive more cooperation from agents when formal incentives are available but not used than when not available. Previous experiments are replicated using a gift-exchange rather than a trust game. Hidden returns to incentives are not observed, and in fact the results show the opposite. Suggestions for future research are provided.

Beyond Moneyball: Changing Compensation In Mlb, Joshua Congdon-Hohman, Jonathan A. Lanning

Economics Department Working Papers

This study examines the changes in player compensation in Major League Baseball during the last three decades. Specifically, we examine the extent to which recently documented changes in players’ compensation structure based on certain types of productivity fits in with the longer term trends in compensation, and identify the value of specific output activities in different time periods. We examine free agent contracts in three-year periods across three decades and find changes to which players’ performance measures are significantly rewarded in free agency. We find evidence that the compensation strategies of baseball teams increased the rewards to “power” statistics like …

Using Behavioral Insights To Improve Take-Up Of A Reemployment Program: Trial Design And Findings, Matthew Darling, Christopher J. O'Leary, Irma L. Perez-Johnson, Jaclyn Lefkowitz, Kenneth J. Kline, Ben Damerow, Randall W. Eberts, Samia Amin, Greg Chojnacki

External Papers and Reports

No abstract provided.

A Study Of The Triggers Of Conflict And Emotional Reactions, Michael Caldera, Michael T. Mcbride, Matthew W. Mccarter, Roman M. Sheremeta

ESI Publications

We study three triggers of conflict and explore their resultant emotional reactions in a laboratory experiment. Economists suggest that the primary trigger of conflict is monetary incentives. Social psychologists suggest that conflicts are often triggered by fear. Finally, evolutionary biologists suggest that a third trigger is uncertainty about an opponent’s desire to cause harm. Consistent with the predictions from economics, social psychology, and evolutionary biology, we find that conflict originates from all three triggers. The three triggers differently impact the frequency of conflict, but not the intensity. Also, we find that the frequency and intensity of conflict decrease positive emotions …