11. Incentives for Effort and Truth

Assigned Reading

Central Idea: The problem in working with other people is to provide the right incentives.

Antithesis: The problem in working with other people is to provide inspiring leadership.


Topics That Might be Discussed in Class

Terms. Participation Constraint, Effort-Choice Constraint (incentive compatibility constraint), Efficiency wage.
For Next Time
Additional Material

Return to the Thinking Strategically Home Page at http://pacioli.bus.indiana.edu/erasmuse/g570/g570.htm. Send comments to Prof. Rasmusen . Last updated: March 23, 2002.