Why Do Firms Offer Dicey Perks? The Case of Unlimited Vacation

Funded Research Proposal

The use of employee perks is becoming increasingly important to organizational competitiveness. Consequently, innovating along the human resource dimension has become a strategy imperative for many firms. Typically, firms introduce perks that are complementary to work. However, another set of perks that makes it easier for people to leave the workplace has gain more popularity over time. Read More

When do Firms Go Green? Comparing Price Incentives with Command and Control Regulations in India

Working Papers

India has a multitude of environmental regulations but a history of poor enforcement. Between 1996 and 2004, India’s Supreme Court required 17 cities to enact action plans to reduce air pollution through a variety of command-and-control (CAC) environmental regulations.Read More

Inequality Aversion When the Reward is Scarce: The Case of Salary vs. Equity Compensation

Working Papers

Do workers have different equality preferences depending on the type of payoff? In many firms, the distribution of equity compensation is more equal than the distribution of salary. We design an experimental group production game to examine how workers respond to combinations of different distributions of equity and salary.Read More

Connecting People for Nudges: Optimal Design of Networks to Motivate Consumer Behavior

Working Papers

An increasing number of start-ups create online and offline shared goal communities for individuals with similar goals to work towards them in the company of others. Such platforms allow individuals to connect and share effort information under the premise that it is more likely for consumers to reach their goals if they can gauge their activity in line with others’ activities.Read More

Can the State Pick Winners? Comparing Firm Outcomes from a Random Subsidy Lottery and Innovation-Targeted Subsidy Formula

Funded Research Proposal

In 2011, California Governor Jerry Brown recognized several of the state’s existing firm incentive policies aimed at catalyzing innovative activity in the state, to be ineffectual, citing poor incentive design.Read More

How to Design Incentives that Make Change Stick

It’s one of the paradoxes of being human: even when we know what’s good for us, we often make choices that are less than optimal. Wharton Professor Iwan Barankay researches how incentives can be used to create positive behavioral changes even after the incentive goes away.Read More

Experimentation and Project Selection: Screening and Learning

Published Research

We study optimal contracting in a setting that combines experimentation and adverse selection. In our leading example, an entrepreneur (agent) is better informed than the investor (principal) about both the quality the project (risky arm’s distribution) and the entrepreneur’s outside option (payoff of the safe arm).Read More

Managerial Compensation and Corporate Spinoffs

Published Research

This article investigates how corporate spinoffs affect managerial compensation. These deals are found to improve the alignment of spinoff firm managers’ incentive compensation with stock market performance, especially among spinoff firm managers that used to be divisional managers of the spun-off subsidiary, and particularly when the spun-off subsidiary performs better than or is unrelated to its parent firm’s remaining businesses.Read More

A randomized control trial in oral health on varying financial incentives and frequency of performance feedback for dental self-care

Funded Research Proposal

The burden of oral disease in the U.S. is high, and in need of novel approaches to improving preventive oral health behaviors. Almost half of U.S. adults have periodontal disease, while 92% of adults and 50% of children experience dental caries. The Affordable Care Act (ACA) put new emphasis on financial incentives in which financial rewards for patients and providers are linked to health decisions and outcomes.Read More

Complementary Assets as Pipes and Prisms: Innovation Incentives and Trajectory Choices

Published Research

The issue of the failure of incumbent firms in the face of radical technical change has been a central question in the technology strategy domain for some time. We add to prior contributions by highlighting the role a firm’s existing set of complementary assets have in influencing its investment in alternative technological trajectories.Read More

Designing Effective Financial Incentives with Start-up Technologies to Induce Long Term Health Improvements

Funded Research Proposal

Numerous technological devices are coming to market that permit for end-user but also remote tracking of health related choices (exercise, medication adherence, weight loss etc.). These devices are transformative as they can be used to inform firms and legislators on how to design financial and non-financial incentives to induce healthy choices.Read More

Team Incentives: Evidence from a Firm Level Experiment

Published Research

Many organizations rely on teamwork, and yet field evidence on the impacts of team-based incentives remains scarce. Compared to individual incentives, team incentives can affect productivity by changing both workers’ effort and team composition. We present evidence from a field experiment designed to evaluate the impact of rank incentives and tournaments on the productivity and composition of teams.Read More