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tsuomela : extrinsic   5 / Comment / Opinion - It is time to treat Wall Street like Main Street
George Akerlof and Rachel Kranton - "But economics has not stood still, and we now know there are at least four reasons why bonuses and pay-for-performance are a risky business. First, it can be hard to see whether employees make the right decisions; superiors do not hold the same information, and the results of decisions play out years later. Second, performance pay will attract exactly those who are willing to take on more risk. People interested in high but steady income will choose other careers. Third, to get their pay, employees may manipulate the system, against the interests of those who set up the incentives: like teachers who are threatened with losing their jobs and teach to the test. Finally, and most perniciously, performance pay can crowd out intrinsic rewards, as when children, having received gold stars for drawing pictures, later draw less than before in their own time. Why draw without getting paid?"
motivation  economics  behavior  bonus  income  business  incentives  incentive-centered-design  management  finance  extrinsic  intrinsic 
march 2010 by tsuomela
PEA Soup: Too many distinctions in value
Perhaps three isn't too many, but it does feel unwieldy. Nevertheless, it seems to me these are all different distinctions in value, even though many people write as if they are the same:

1. Extrinsic-intrinsic
2. Conditional-unconditional
3. Priceable-priceless
value  philosophy  extrinsic  intrinsic  pricing 
june 2009 by tsuomela

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