TY  - RPRT
        AU  - Kräkel, Matthias
        TI  - Emotions and Incentives
        PY  - 2004/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 1270
        UR  - https://www.iza.org/index.php/publications/dp1270
        AB  - 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 analyzed 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.
        KW  - piece rates
KW  - incentives
KW  - emotions
KW  - bonuses
KW  - tournaments
        ER  -