Replication data for: The Hidden Costs of Control
Principal Investigator(s): View help for Principal Investigator(s) Armin Falk; Michael Kosfeld
Version: View help for Version V1
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Project Citation:
Falk, Armin, and Kosfeld, Michael. Replication data for: The Hidden Costs of Control. Nashville, TN: American Economic Association [publisher], 2006. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-12-07. https://doi.org/10.3886/E116246V1
Project Description
Summary:
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We analyze the consequences of control on motivation in an experimental principalagent
game, where the principal can control the agent by implementing a minimum
performance requirement before the agent chooses a productive activity. Our
results show that control entails hidden costs since most agents reduce their
performance as a response to the principals controlling decision. Overall, the effect
of control on the principals payoff is nonmonotonic. When asked for their emotional
perception of control, most agents who react negatively say that they perceive
the controlling decision as a signal of distrust and a limitation of their choice
autonomy. (JEL D82, Z13)
Scope of Project
JEL Classification:
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D82 Asymmetric and Private Information; Mechanism Design
Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
D82 Asymmetric and Private Information; Mechanism Design
Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
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