Risking Other People's Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism

Publikation: Working paper › Forskning

Standard

Risking Other People's Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism. / Andersson, Ola; Holm, Hakan J.; Tyran, Jean-Robert; Wengström, Erik.

2014.

Publikation: Working paper › Forskning

Harvard

Andersson, O, Holm, HJ, Tyran, J-R & Wengström, E 2014 'Risking Other People's Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism'.

APA

Andersson, O., Holm, H. J., Tyran, J-R., & Wengström, E. (2014). Risking Other People's Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism. IFN Working Paper Nr. 989

Vancouver

Andersson O, Holm HJ, Tyran J-R, Wengström E. Risking Other People's Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism. 2014 jul. 17.

Author

Andersson, Ola ; Holm, Hakan J. ; Tyran, Jean-Robert ; Wengström, Erik. / Risking Other People's Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism. 2014. (IFN Working Paper; Nr. 989).

Bibtex

@techreport{b0d52dc1145745efa2d1a7c33ea7931d,
title = "Risking Other People's Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism",
abstract = "We study risk taking on behalf of others in an experiment on a large random sample. The decision makers in our experiment are facing high-powered incentives to increase the risk on behalf of others through hedged compensation contracts or with tournament incentives. Compared to a baseline condition without such incentives, we find that the decision makers respond strongly to these incentives that result in an increased risk exposure of others. However, we find that the increase in risk taking is mitigated by altruistic preferences and pro-social personality traits.",
keywords = "Incentives, competition, hedging, risk taking, social preferences",
author = "Ola Andersson and Holm, {Hakan J.} and Jean-Robert Tyran and Erik Wengstr{\"o}m",
year = "2014",
month = jul,
day = "17",
language = "English",
series = "IFN Working Paper",
number = "989",
type = "WorkingPaper",

}

RIS

TY - UNPB

T1 - Risking Other People's Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism

AU - Andersson, Ola

AU - Holm, Hakan J.

AU - Tyran, Jean-Robert

AU - Wengström, Erik

PY - 2014/7/17

Y1 - 2014/7/17

N2 - We study risk taking on behalf of others in an experiment on a large random sample. The decision makers in our experiment are facing high-powered incentives to increase the risk on behalf of others through hedged compensation contracts or with tournament incentives. Compared to a baseline condition without such incentives, we find that the decision makers respond strongly to these incentives that result in an increased risk exposure of others. However, we find that the increase in risk taking is mitigated by altruistic preferences and pro-social personality traits.

AB - We study risk taking on behalf of others in an experiment on a large random sample. The decision makers in our experiment are facing high-powered incentives to increase the risk on behalf of others through hedged compensation contracts or with tournament incentives. Compared to a baseline condition without such incentives, we find that the decision makers respond strongly to these incentives that result in an increased risk exposure of others. However, we find that the increase in risk taking is mitigated by altruistic preferences and pro-social personality traits.

KW - Incentives

KW - competition

KW - hedging

KW - risk taking

KW - social preferences

UR - https://ssrn.com/abstract=2466988

M3 - Working paper

T3 - IFN Working Paper

BT - Risking Other People's Money: Experimental Evidence on Bonus Schemes, Competition, and Altruism

ER -

ID: 241647820