Template-Type: ReDIF-Paper 1.0
Title: Emotions and Incentives
Author-Name: Matthias Kräkel
Author-Email: 
Classification-JEL: J3, M5
Keywords: bonuses, emotions, incentives, piece rates, tournaments
Abstract: We introduce a concept of emotions that emerge when workers compare their own performance with a given 
	standard or with the performances of co-workers. Assuming heterogeneity among the workers the interplay of emotions 
	and incentives is analysed by focusing on three incentive schemes that are frequently used in practice: tournaments, 
	bonuses and piece rates. We identify certain conditions under which emotions lead to additional incentives and under 
	which the employer benefits from emotional workers. Furthermore, the concept of emotions is used to explain puzzling 
	results from laboratory and field experiments. Finally, the results provide some insights on an employer's possible 
	preferences in favor of heterogeneous instead of homogeneous work groups. 
Note: 
Length: 59
Creation-Date: 2004-08	
Revision-Date: 
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse14_2004.pdf
File-Format: application/pdf
Handle: RePEc:bon:bonedp:bgse14_2004