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Showing 1 to 2 of 2 for “"Piece rates"”.
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Procurement Contracts and Second Sourcing
… cannot vary with quality or investment (no piece rates). The reward for the incumbent and the probability of switching suppliers cannot be made contingent to the value of a verifiable variable. The compensation can vary over time, since the time period is verifiable. Between periods the …
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Essays on Team-based Incentives
… incentives effective? In essay 1, I focus on the piece rates compensation scheme. Specifically, I examine three types of incentives: Individual incentive where agents are paid by a commission rate purely on their individual output; Team-based incentive where agents are paid by a commission rate on …