Emanuelle Auriol, Toulouse School of Economics – University of Copenhagen

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Emanuelle Auriol, Toulouse School of Economics

"Anti-social behavior in non-profit organizations"

Two types of intrinsically motivated workers are considered: “good” workers care about the mission of an organization, whereas “bad” workers derive pleasure from destructive behavior. Compared to the case with only good motivated workers, the mission-oriented sector has to resort to higher monitoring to deter bad workers from entering the sector. In equilibrium, bad workers work in the for-profit sector where they behave like “normal” people, while good workers self-select into the mission-oriented sector. In the profit-oriented sector, both monitoring and bonus payments for good behavior increase to control the damage caused by bad workers. When standard monitoring is impossible, ex-ante screening and peer monitoring might deter bad workers from entering the nonprofit sector but they come at a cost. Peer monitoring reduces output due to free riding and because workers require higher compensation to work in teams. The results of the paper are illustrated by the threat posed by pedophiles in nonprofit organization such as NGO or refugee camp.

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