Incentive schemes for investment in human capital by members of a team of decision makers

Drora Karotkin, Jacob Paroush

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

This paper shows that in the dichotomous collective choice model, there is a Pareto improvement if individual rewards are contingent on both the individual's and the team's correct decision, and not solely on the latter. Each of the team's members would invest more in human capital than he would without such an incentive.

Original languageEnglish
Pages (from-to)41-51
Number of pages11
JournalLabour Economics
Volume2
Issue number1
DOIs
StatePublished - Mar 1995

Keywords

  • Decision making
  • Free riding
  • Human capital
  • Incentive schemes

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