Jonathan De Quidt
Bonus versus penalty: how robust are the effects of contract framing?
De Quidt, Jonathan; Fallucchi, Francesco; Kölle, Felix; Nosenzo, Daniele; Quercia, Simone
We study the relative effectiveness of contracts that are framed either in terms of bonuses or penalties. In one set of treatments subjects know at the time of effort provision whether they have achieved the bonus / avoided the penalty. In another set of treatments subjects only learn the success of their performance at the end of the task. We fail to observe a contract framing effect in either condition: effort provision is statistically indistinguishable under bonus and penalty contracts.
|Journal Article Type||Article|
|Publication Date||Dec 30, 2017|
|Journal||Journal of the Economic Science Association|
|Peer Reviewed||Peer Reviewed|
|APA6 Citation||De Quidt, J., Fallucchi, F., Kölle, F., Nosenzo, D., & Quercia, S. (2017). Bonus versus penalty: how robust are the effects of contract framing?. Journal- Economic Science Association, 3(2), https://doi.org/10.1007/s40881-017-0039-9|
|Keywords||contract framing; bonus; penalty; fine; loss aversion|
|Copyright Statement||Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by/4.0|
Copyright information regarding this work can be found at the following address: http://creativecommons.org/licenses/by/4.0
You might also like
Altruism, fast and slow? Evidence from a meta-analysis and a new experiment
Promoting voter registration: the effects of low-cost interventions on behaviour and norms
On the social inappropriateness of discrimination
The importance of peers for compliance with norms of fair sharing
Employee incentives: bonuses or penalties?