Experimental evidence on financial incentives, information and decision-making

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  2. Professor Ian Dobbs
  3. Tony Miller
Author(s)Dobbs IM, Miller AD
Publication type Article
JournalThe British Accounting Review
Year2009
Volume41
Issue2
Pages71-89
ISSN (print)0890-8389
ISSN (electronic)1095-8347
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This paper reports on a series of experiments aimed at exploring in greater detail previous work on the effects of financial incentives on information use and task performance in a principal-agent setting. The paper also develops some new statistical modelling in the area of experimental testing including incorporation into the modelling approach of data from post-experiment questionnaires. We find significant support for the finding that profit-related individual money rewards encourage increased accessing of valuable but costly past profit information by agents – and that this in turn enhances individual performance in earning profit for the agency.
PublisherAcademic Press
URLhttp://dx.doi.org/10.1016/j.bar.2008.10.002
DOI10.1016/j.bar.2008.10.002
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