scholarly journals Are You Paying Your Employees to Cheat? An Experimental Investigation

Author(s):  
C. Bram Cadsby ◽  
Fei Song ◽  
Francis Tapon

Abstract We compare, through a laboratory experiment using salient financial incentives, misrepresentations of performance under target-based compensation with those under both a linear piece-rate and a tournament-based bonus system. An anagram game was employed as the experimental task. Results show that productivity was similar and statistically indistinguishable under the three schemes. In contrast, whether one considers the number of overclaimed words, the number of work/pay periods in which overclaims occur, or the number of participants making an overclaim at least once, target-based compensation produced significantly more cheating than either of the other two systems. While earlier research has compared cheating under target-based compensation with cheating under non-performance-based compensation, which offers no financial incentive to cheat, this is the first study that compares cheating under target-based schemes to cheating under other performance-based schemes. The results suggest that cheating as a response to incentives can be mitigated without giving up performance pay altogether.

2018 ◽  
Vol 14 (10) ◽  
pp. 53
Author(s):  
Marisa Bucheli ◽  
Mariana Gerstenbluth ◽  
Maximo Rossi

The aim of this paper is to analyze the intake of two types of sweet snacks by women using competitive environments as stressors. We study the effect of competition on food intake from two perspectives: overall consumption and the substitution between two snacks (a “healthy” and a “nonhealthy” snack). For this purpose we did a laboratory experiment in which the participants were women. They were offered chocolate candies and raisins as they solved several problems. Half of the participants completed the tasks at a noncompetitive piece rate and the other half under a competitive tournament incentive scheme. The results show that at the median the participants’ intake was higher under tournament than piece rate payment. Moreover, the increase in food intake was led by a rise in chocolate consumption. We conclude that competition increases the consumption of fat, calories and carbohydrates and thus affects eating behavior and promotes unhealthy patterns. This research contributes to the strand of the literature that focuses on factors that affect the eating behavior which influences health.


2018 ◽  
Vol 10 (1) ◽  
pp. 439-463 ◽  
Author(s):  
Nava Ashraf ◽  
Oriana Bandiera

We review the evidence on social incentives, namely on how social interactions with colleagues, subordinates, bosses, customers, and others shape agents’ effort choices in organizations. We propose a two-way taxonomy based on ( a) whether the social group is horizontal (peers at the same level of the hierarchy) or vertical (individuals at different levels within or outside of the organization) and ( b) whether the agent's effort creates externalities for the other members of their social group. We show settings in which social incentives improve productivity and settings in which they reduce it. In most cases, the size of the effect is approximately 10%, which is half of the typical effect of performance pay. We also show that social incentives can interfere with financial incentives, making them ineffective or even detrimental. We conclude that social incentives are a powerful motivator that must be taken into account in the design of organizational policies and that more research is needed to understand how policies can shape the preferences that underpin these incentives.


1985 ◽  
Vol 56 (1) ◽  
pp. 223-235 ◽  
Author(s):  
Vandra L. Huber

This 3 × 3 study (with one cell missing) examined the effectiveness of goal setting (participative, assigned, and no goals) and financial incentives (noncontingent, piece rate, and goal contingent) as techniques to stimulate learning 88 inexperienced trainees performed a 10-hr., 5-day proofreading proficiency task in a laboratory setting. The linear trends for all groups except the control group in which noncontingent ($30 for completing the training period) pay was offered were significant. Planned comparisons indicated that learning was greatest when a performance goal was assigned and a financial incentive offered for demonstrating that level of performance. The offer of piece-rate reinforcement also stimulated faster learning than the offer of noncontingent pay. Setting goals, regardless of the method, did not result in significant performance increases beyond that achieved by offering a $30 incentive for merely completing the training. Finally, financial incentives affected goal choice. Implications for training programs were discussed.


Author(s):  
Goutam Chandra Karar ◽  
Nipu Modak

The experimental investigation of reciprocating motion between the aluminum doped crumb rubber /epoxy composite and the steel ball has been carried out under Reciprocating Friction Tester, TR-282 to study the wear and coefficient of frictions using different normal loads (0.4Kg, 0.7Kgand1Kg), differentfrequencies (10Hz, 25Hz and 40Hz).The wear is a function of normal load, reciprocating frequency, reciprocating duration and the composition of the material. The percentage of aluminum presents in the composite changesbut the other components remain the same.The four types of composites are fabricated by compression molding process having 0%, 10%, 20% and 30% Al. The effect of different parameters such as normal load, reciprocating frequency and percentage of aluminum has been studied. It is observed that the wear and coefficient of friction is influenced by the parameters. The tendency of wear goes on decreasing with the increase of normal load and it is minimum for a composite having 10%aluminum at a normal load of 0.7Kg and then goes on increasing at higher loads for all types of composite due to the adhesive nature of the composite. The coefficient of friction goes on decreasing with increasing normal loads due to the formation of thin film as an effect of heat generation with normal load.


2016 ◽  
Vol 29 (1) ◽  
pp. 57-75 ◽  
Author(s):  
Jason L. Brown ◽  
Donald V. Moser

ABSTRACT Shareholder litigation is an important part of the regulation of securities markets that can influence corporate managers' reporting behavior. Prior research shows that conventional economic factors affect investors' litigation decisions. We use experimental markets to examine whether investors engage in costly litigation even without a direct financial incentive to do so and whether this affects managers' reporting decisions and managers' and investors' welfare. We find that investors frequently litigate when they can impose a financial penalty on managers for misreporting even though they cannot recover their legal fees or receive restitution for their losses. Moreover, this deters managers' shirking and misreporting and improves managers' and investors' welfare almost as effectively as when investors can recover their legal fees and receive restitution for their losses. Overall, our results indicate that, in addition to financial incentives, investors' desire to punish misreporting plays an important role in their litigation decisions, and that may yield substantial welfare benefits.


2021 ◽  
pp. 1-24
Author(s):  
Fatima A Fagbenro ◽  
Tessa Lasswell ◽  
Sarah A Rydell ◽  
J Michael Oakes ◽  
Brian Elbel ◽  
...  

ABSTRACT Objective To report perspectives of participants in a food benefit program that includes FAS restrictions and FAS restrictions paired with F/V incentives. Design Randomized experimental trial in which participant perspectives were an exploratory study outcome. Setting Participants were randomized into one of three SNAP-like food benefit program groups - (1) Restriction: not allowed to buy FAS with benefits; (2) Restriction paired with incentive: not allowed to buy FAS with benefits and 30% financial incentive on eligible F/V purchased using benefits; or (3) Control: Same food purchasing rules as SNAP. Participants were asked questions to assess program satisfaction. Participants Adults in the Minneapolis-St. Paul, MN metropolitan area, eligible for but not currently participating in SNAP who completed baseline and follow-up study measures (n=254). Results Among remaining households in each group, most found the program helpful in buying nutritious foods (88.2%-95.7%) and were satisfied with the program (89.1%-93.0%). Sensitivity analysis results indicate that reported helpfulness and satisfaction with the program may in some instances be lower among the Restriction and the Restrictions paired with Incentive groups in comparison to the control group. Conclusions A food benefit program that includes restriction on purchase of FAS or restriction paired with a financial incentive for F/V purchases may be acceptable to most SNAP-eligible households with children.


2018 ◽  
Vol 64 (No. 7) ◽  
pp. 296-302 ◽  
Author(s):  
Dini Morteza ◽  
Nikooy Mehrdad ◽  
Naskovets Michael Trofimovich ◽  
Ghomi Alireza

In this research, the results of an experimental survey on the measurement of vertical stresses are presented. Four treatments were used in this study such as combination of geotextile vertical and horizontal structure with dimensions of 5 × 5 and 10 × 10 cm, horizontal geotextile and the treatment without geotextile. Five sensors were installed in different hole locations and the lead of the truck traffic was transmitted by cables to data logging and recording devices to measure the pressure from vehicle traffic on the simulated pavement layer. Mean comparison of the treatments showed that the geotextile with vertical and horizontal structure and dimensions of 5 × 5 cm exerted the lowest pressure on the lower layers compared with the other treatments and there was a significant difference between the value of this treatment and the other treatments and that this treatment could significantly reduce the pressure of truck traffic on the forest road.


BMJ Open ◽  
2019 ◽  
Vol 9 (6) ◽  
pp. e026086
Author(s):  
Yasutake Tomata ◽  
Fumiya Tanji ◽  
Dieta Nurrika ◽  
Yingxu Liu ◽  
Saho Abe ◽  
...  

IntroductionPhysical activity is one of the major modifiable factors for promotion of public health. Although it has been reported that financial incentives would be effective for promoting health behaviours such as smoking cessation or attendance for cancer screening, few randomised controlled trials (RCTs) have examined the effect of financial incentives for increasing the number of daily steps among individuals in a community setting. The aim of this study is to investigate the effects of financial incentives for increasing the number of daily steps among community-dwelling adults in Japan.Methods and analysisThis study will be a two-arm, parallel-group RCT. We will recruit community-dwelling adults who are physically inactive in a suburban area (Nakayama) of Sendai city, Japan, using leaflets and posters. Participants that meet the inclusion criteria will be randomly allocated to an intervention group or a waitlist control group. The intervention group will be offered a financial incentive (a chance to get shopping points) if participants increase their daily steps from their baseline. The primary outcome will be the average increase in the number of daily steps (at 4–6 weeks and 7–9 weeks) relative to the average number of daily steps at the baseline (1–3 weeks). For the sample size calculation, we assumed that the difference of primary outcome would be 1302 steps.Ethics and disseminationThis study has been ethically approved by the research ethics committee of Tohoku University Graduate School of Medicine, Japan (No. 2018-1-171). The results will be submitted and published in a peer-reviewed scientific journal.Trial registration numberUMIN000033276; Pre-results.


1982 ◽  
Vol 60 (5) ◽  
pp. 679-686 ◽  
Author(s):  
R. Fletcher

This paper provides a brief survey of the experimental and theoretical situation regarding the galvano- and thermomagnetic properties of potassium viewed within the context of the behaviour of other metals. Most of the data are consistent with various sample imperfections as being the major source of the anomalies that are found. However, the precise nature of the imperfections and the mechanism by which the imperfections produce the anomalies are not yet known. It is argued that the recently discovered detailed structure in the high field induced torque of K should be subjected to intensive experimental investigation before drawing any conclusions with regards to the possible presence of a charge density wave; the other magnetotransport properties offer little evidence either for or against such a possibility.


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