This paper shows that fixed wages are not the optimal solution for a labour contract when the worker’s outside option is a function of a factor that can vary. The worker’s contract will include a bonus that will also be a ...

A well-known prescription in corporate governance is that high-powered incentive contracts such as performance bonuses are an optimal mechanism for aligning managers with shareholders on an efficient investment policy. ...

This article presents the results of a research that has as its analysis focus the payment by performance, represented in the public educational system of the São Paulo State by the bonus-merit. The bonus, such as other ...

Using a simple game-theoretical model of contests, we compare the effort exerted by rugby teams under three different point systems used in tournaments around the world. We consider a point system that awards four points ...

Bonus payment schemes to teachers have been growing overseas as a tool for education quality improvement. Since there is very little evidence concerning this kind of policy in Brazil, this papers aims to evaluate the effect ...

The models to reward employees have been widespread and adapted to the new the business world we live, considering the new ways to manage the man-power. The bonus systems have come as an additional alternative to reward ...

We study a repeated principal agent model with subjective evaluations. We construct simple bonus-or-terminate incentive schemes. In these schemes, the principal evaluates the agent every T periods. The principal pays a ...