Wednesday, May 23, 2007

Cécile Aubert

U. of Bordeaux 4

Cécile Aubert

Motivation, Altruism and Effort

Abstract

The objective of this workshop is to take stock of advances in economics and psychology when designing incentive contracts. Recent literature has highlighted a well-known psychological phenomenon: monetary incentives may crowd out voluntary contributions. We will focus on a slightly different issue, that of a principal facing an agent with intrinsic motivation or altruism. We will in particular discuss how incentive contracts should be modified to take these sources of motivation into account, in the presence of moral hazard.