Incentives and discrimination: A functional optimization approach

著者: 畠山 哲太郎
発行日: 2025年3月21日
No: DP2025-003
JELコード: C72, D23, D62, D63, J71
言語: 英語
【要旨/ハイライト】

In team production models, an optimal incentive scheme that guarantees workers’ effort investment can be discriminatory (Winter, 2004). We demonstrate how this trade-off in incentives and  discrimination disappears in a complementary setting. In our model, as well as payment scheme for workers, the firm chooses a production technology, mapping from workers’ effort choice to the success probability of the project. Contrary to the known result, our firm-optimal incentive scheme does not
discriminate any symmetric workers.