{"id":"https://openalex.org/W4415765868","doi":"https://doi.org/10.1111/ecin.70021","title":"Unexpected costs of performance incentives with production uncertainty: Theory and evidence from a real\u2010effort laboratory experiment","display_name":"Unexpected costs of performance incentives with production uncertainty: Theory and evidence from a real\u2010effort laboratory experiment","publication_year":2025,"publication_date":"2025-11-01","ids":{"openalex":"https://openalex.org/W4415765868","doi":"https://doi.org/10.1111/ecin.70021"},"language":"en","primary_location":{"id":"doi:10.1111/ecin.70021","doi":"https://doi.org/10.1111/ecin.70021","is_oa":false,"landing_page_url":"https://doi.org/10.1111/ecin.70021","pdf_url":null,"source":{"id":"https://openalex.org/S206615888","display_name":"Economic Inquiry","issn_l":"0043-3640","issn":["0043-3640","0095-2583","1465-7295"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a","anvur-class-a","anvur-scientific","cwts-core","jufo-2","norway-1","poland-100","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Economic Inquiry","raw_type":"journal-article"},"volume":null,"type":"article","is_traditional":true,"indexed_in":["crossref"],"open_access":{"is_oa":true,"oa_status":"green","oa_url":"https://doi.org/10.2139/ssrn.4217628","any_repository_has_fulltext":true},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5032015595","display_name":"Michael Kofoed","orcid":null,"observed_orcids":[]},"institutions":[{"id":"https://openalex.org/I75027704","display_name":"University of Tennessee at Knoxville","ror":"https://ror.org/020f3ap87","country_code":"US","type":"education","lineage":["https://openalex.org/I75027704"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"Michael S. Kofoed","raw_affiliation_strings":["Department of Economics and IZA University of Tennessee  Knoxville Tennessee USA"],"raw_orcid":null,"affiliations":[{"raw_affiliation_string":"Department of Economics and IZA University of Tennessee  Knoxville Tennessee USA","institution_ids":["https://openalex.org/I75027704"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5052301365","display_name":"Aaron Phipps","orcid":"https://orcid.org/0000-0002-3313-2873","observed_orcids":["https://orcid.org/0000-0002-3313-2873"]},"institutions":[],"countries":[],"is_corresponding":true,"raw_author_name":"Aaron Phipps","raw_affiliation_strings":["Department of Social Sciences  West Point New York USA"],"raw_orcid":"https://orcid.org/0000-0002-3313-2873","affiliations":[{"raw_affiliation_string":"Department of Social Sciences  West Point New York USA","institution_ids":[]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":1,"corresponding_author_ids":["https://openalex.org/A5052301365"],"corresponding_institution_ids":[],"apc_list":{"value":3400,"currency":"USD","value_usd":3400},"apc_paid":null,"fwci":0.0,"has_fulltext":false,"cited_by_count":0,"citation_normalized_percentile":{"value":0.23426251,"is_in_top_1_percent":false,"is_in_top_10_percent":false},"cited_by_percentile_year":null,"biblio":{"volume":"64","issue":"1","first_page":"261","last_page":"285"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10646","display_name":"Experimental Behavioral Economics Studies","score":0.9868000149726868,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10646","display_name":"Experimental Behavioral Economics Studies","score":0.9868000149726868,"subfield":{"id":"https://openalex.org/subfields/2002","display_name":"Economics and Econometrics"},"field":{"id":"https://openalex.org/fields/20","display_name":"Economics, Econometrics and Finance"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T11182","display_name":"Auction Theory and Applications","score":0.003800000064074993,"subfield":{"id":"https://openalex.org/subfields/1803","display_name":"Management Science and Operations Research"},"field":{"id":"https://openalex.org/fields/18","display_name":"Decision Sciences"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T10213","display_name":"Public Policy and Administration Research","score":0.0017000000225380063,"subfield":{"id":"https://openalex.org/subfields/3321","display_name":"Public Administration"},"field":{"id":"https://openalex.org/fields/33","display_name":"Social Sciences"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/performance-incentives","display_name":"performance-based incentives","score":0.9769999980926514},{"id":"https://openalex.org/keywords/production-uncertainty","display_name":"production uncertainty","score":0.9800000190734863},{"id":"https://openalex.org/keywords/principal-agent-model","display_name":"principal-agent model","score":0.7509999871253967},{"id":"https://openalex.org/keywords/effort-reduction","display_name":"effort reduction","score":0.48899999260902405},{"id":"https://openalex.org/keywords/public-service-delivery","display_name":"public service delivery","score":0.5370000004768372},{"id":"https://openalex.org/keywords/medicare","display_name":"Medicare","score":0.5669999718666077},{"id":"https://openalex.org/keywords/real-effort-experiment","display_name":"real-effort experiment","score":0.5580000281333923}],"concepts":[{"id":"https://openalex.org/C29122968","wikidata":"https://www.wikidata.org/wiki/Q1414816","display_name":"Incentive","level":2,"score":0.8978999853134155},{"id":"https://openalex.org/C162324750","wikidata":"https://www.wikidata.org/wiki/Q8134","display_name":"Economics","level":0,"score":0.7386000156402588},{"id":"https://openalex.org/C2778348673","wikidata":"https://www.wikidata.org/wiki/Q739302","display_name":"Production (economics)","level":2,"score":0.7342000007629395},{"id":"https://openalex.org/C175444787","wikidata":"https://www.wikidata.org/wiki/Q39072","display_name":"Microeconomics","level":1,"score":0.538100004196167},{"id":"https://openalex.org/C66887028","wikidata":"https://www.wikidata.org/wiki/Q382444","display_name":"Marginal cost","level":2,"score":0.42289999127388},{"id":"https://openalex.org/C100001284","wikidata":"https://www.wikidata.org/wiki/Q2248246","display_name":"Public economics","level":1,"score":0.41850000619888306},{"id":"https://openalex.org/C92064499","wikidata":"https://www.wikidata.org/wiki/Q739302","display_name":"Production theory","level":3,"score":0.35280001163482666},{"id":"https://openalex.org/C202063016","wikidata":"https://www.wikidata.org/wiki/Q634028","display_name":"Marginal product","level":3,"score":0.3474000096321106},{"id":"https://openalex.org/C138551086","wikidata":"https://www.wikidata.org/wiki/Q842271","display_name":"Marginal utility","level":2,"score":0.3154999911785126},{"id":"https://openalex.org/C162118730","wikidata":"https://www.wikidata.org/wiki/Q1128453","display_name":"Actuarial science","level":1,"score":0.30559998750686646},{"id":"https://openalex.org/C40700","wikidata":"https://www.wikidata.org/wiki/Q1411783","display_name":"Industrial organization","level":1,"score":0.2777000069618225},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.27410000562667847},{"id":"https://openalex.org/C149782125","wikidata":"https://www.wikidata.org/wiki/Q160039","display_name":"Econometrics","level":1,"score":0.27129998803138733},{"id":"https://openalex.org/C68359772","wikidata":"https://www.wikidata.org/wiki/Q185715","display_name":"Opportunity cost","level":2,"score":0.2630000114440918},{"id":"https://openalex.org/C127729010","wikidata":"https://www.wikidata.org/wiki/Q60165","display_name":"Dynamic inconsistency","level":2,"score":0.2524999976158142}],"mesh":[],"locations_count":2,"locations":[{"id":"doi:10.1111/ecin.70021","doi":"https://doi.org/10.1111/ecin.70021","is_oa":false,"landing_page_url":"https://doi.org/10.1111/ecin.70021","pdf_url":null,"source":{"id":"https://openalex.org/S206615888","display_name":"Economic Inquiry","issn_l":"0043-3640","issn":["0043-3640","0095-2583","1465-7295"],"is_oa":false,"is_in_doaj":false,"is_core":true,"listed_in":["abdc-a","anvur-class-a","anvur-scientific","cwts-core","jufo-2","norway-1","poland-100","russia-white-list-1","vabb-shw"],"host_organization":"https://openalex.org/P4310320595","host_organization_name":"Wiley","host_organization_lineage":["https://openalex.org/P4310320595"],"host_organization_lineage_names":["Wiley"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Economic Inquiry","raw_type":"journal-article"},{"id":"doi:10.2139/ssrn.4217628","doi":"https://doi.org/10.2139/ssrn.4217628","is_oa":true,"landing_page_url":"https://doi.org/10.2139/ssrn.4217628","pdf_url":null,"source":{"id":"https://openalex.org/S4210172589","display_name":"SSRN Electronic Journal","issn_l":"1556-5068","issn":["1556-5068"],"is_oa":true,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I1318003438","host_organization_name":"RELX Group (Netherlands)","host_organization_lineage":["https://openalex.org/I1318003438"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"acceptedVersion","is_accepted":true,"is_published":false,"raw_source_name":null,"raw_type":"posted-content"}],"best_oa_location":{"id":"doi:10.2139/ssrn.4217628","doi":"https://doi.org/10.2139/ssrn.4217628","is_oa":true,"landing_page_url":"https://doi.org/10.2139/ssrn.4217628","pdf_url":null,"source":{"id":"https://openalex.org/S4210172589","display_name":"SSRN Electronic Journal","issn_l":"1556-5068","issn":["1556-5068"],"is_oa":true,"is_in_doaj":false,"is_core":false,"listed_in":[],"host_organization":"https://openalex.org/I1318003438","host_organization_name":"RELX Group (Netherlands)","host_organization_lineage":["https://openalex.org/I1318003438"],"host_organization_lineage_names":[],"type":"repository"},"license":null,"license_id":null,"version":"acceptedVersion","is_accepted":true,"is_published":false,"raw_source_name":null,"raw_type":"posted-content"},"sustainable_development_goals":[{"id":"https://metadata.un.org/sdg/8","display_name":"Decent work and economic growth","score":0.48510000109672546}],"study_designs":[],"awards":[{"id":"https://openalex.org/G8155514587","display_name":"Virginia Education Science Training (VEST) program","funder_award_id":"R305B140026","funder_id":"https://openalex.org/F4320332210","funder_display_name":"Institute of Education Sciences"}],"funders":[{"id":"https://openalex.org/F4320332210","display_name":"Institute of Education Sciences","ror":"https://ror.org/04et59085"}],"has_content":{"grobid_xml":false,"pdf":false},"content_urls":null,"referenced_works_count":29,"referenced_works":["https://openalex.org/W1875145339","https://openalex.org/W1993884221","https://openalex.org/W2021756217","https://openalex.org/W2046633028","https://openalex.org/W2050904362","https://openalex.org/W2055022672","https://openalex.org/W2061572779","https://openalex.org/W2070214727","https://openalex.org/W2085577258","https://openalex.org/W2093908896","https://openalex.org/W2104318064","https://openalex.org/W2125313549","https://openalex.org/W2131123037","https://openalex.org/W2149902237","https://openalex.org/W2153221485","https://openalex.org/W2157125979","https://openalex.org/W2169258330","https://openalex.org/W2344929560","https://openalex.org/W2794621608","https://openalex.org/W2890421732","https://openalex.org/W2971169958","https://openalex.org/W3008102947","https://openalex.org/W3121965784","https://openalex.org/W3122276354","https://openalex.org/W3123468586","https://openalex.org/W3124932231","https://openalex.org/W3125353710","https://openalex.org/W4284967726","https://openalex.org/W4403383905"],"related_works":["https://openalex.org/W1971458805","https://openalex.org/W7051746558","https://openalex.org/W1547871979","https://openalex.org/W2890403125","https://openalex.org/W2068416123","https://openalex.org/W2470105589","https://openalex.org/W3124612177","https://openalex.org/W2131330805","https://openalex.org/W1591626143","https://openalex.org/W1481712878"],"abstract_inverted_index":{"Abstract":[0],"Policy":[1],"advocates":[2],"often":[3],"promote":[4],"market\u2010like":[5],"incentives":[6,20,71],"for":[7,18],"publicly":[8],"provided":[9],"services":[10],"like":[11],"education":[12],"or":[13],"healthcare":[14],"(e.g.,":[15],"Medicare).":[16],"Evidence":[17],"performance":[19],"in":[21,53,76],"these":[22,87],"sectors":[23],"is":[24],"mixed,":[25],"possibly":[26],"due":[27],"to":[28,51],"production":[29],"uncertainty":[30,33,48,65,95],"represented":[31],"as":[32,94],"about":[34],"the":[35],"marginal":[36],"effect":[37],"of":[38],"inputs.":[39],"Using":[40],"a":[41,81],"principal\u2010agent":[42],"model,":[43],"we":[44],"demonstrate":[45],"that":[46],"such":[47,77],"can":[49],"lead":[50],"inefficiencies":[52],"output\u2010based":[54],"incentives.":[55],"The":[56],"model":[57],"illustrates":[58],"how":[59],"employees":[60],"favor":[61],"inputs":[62,93],"with":[63],"lower":[64],"and":[66,97],"reduce":[67,98],"overall":[68,99],"effort.":[69,100],"Input\u2010based":[70],"might":[72],"be":[73],"more":[74],"effective":[75],"cases.":[78],"We":[79],"conduct":[80],"real\u2010effort":[82],"lab":[83],"experiment":[84],"which":[85],"validates":[86],"predictions:":[88],"participants":[89],"shift":[90],"from":[91],"efficient":[92],"grows,":[96]},"counts_by_year":[],"updated_date":"2026-11-04T10:54:05.112534","created_date":"2025-11-01T00:00:00"}