Review Questions

1.
fiogf49gjkf0d
fiogf49gjkf0d
What is the primary difference between hard and soft information? Give some examples that illustrate this difference.
2.
fiogf49gjkf0d
fiogf49gjkf0d
Give some examples of principal–agent relationships.
3.
fiogf49gjkf0d
fiogf49gjkf0d
What is meant by a piece-rate contract? How does it differ from commission-based pay?
4.
fiogf49gjkf0d
fiogf49gjkf0d
What are meant by the concepts of risk neutrality and risk aversion?
5.
fiogf49gjkf0d
fiogf49gjkf0d
A general finding in the incentives literature is that people do respond favorably to incentives. Given this, why is it typically not optimal to set the highest possible piece rate?
6.
fiogf49gjkf0d
fiogf49gjkf0d
What are some of the advantages and disadvantages of using salary based pay as opposed to piece rates?
7.
fiogf49gjkf0d
fiogf49gjkf0d
What conditions can give rise to the ratchet effect?
8.
fiogf49gjkf0d
fiogf49gjkf0d
What is meant by an efficiency wage?
9.
fiogf49gjkf0d
fiogf49gjkf0d
Explain what is meant by the 1/N problem in teamwork?
10.
fiogf49gjkf0d
fiogf49gjkf0d
What are the main features of a tournament? What are the advantages and disadvantages of this kind of reward scheme?

Submit to Gradebook:

First Name:
 
Last Name:
 
Your Email Address:
 
Your Professor's Email Address: