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DTSTART:19960101T000000 END:STANDARD BEGIN:STANDARD TZNAME:GMT TZOFFSETFROM:+0100 TZOFFSETTO:+0000 DTSTART:19961027T020000 RRULE:FREQ=YEARLY;BYMONTH=10;BYDAY=-1SU END:STANDARD END:VTIMEZONE BEGIN:VEVENT DTSTAMP:20260507T062155Z DTSTART;VALUE=DATE-TIME:20211019T140000 DTEND;VALUE=DATE-TIME:20211019T153000 SUMMARY:Applied Economics\, Econometrics & Public Policy (CAGE) Seminar - Johannes Abeler (Oxford) TZID:Europe/London UID:20211019-8a1785d87b77d89c017c31a398966375@warwick.ac.uk CREATED:20211013T133918Z DESCRIPTION:Title : Bounded Rationality\, Complexity and Optimal Incentiv es (joint with David Huffman and Collin Raymond) The abstract is: This p aper provides empirical support for the importance of contract complexit y\, and heterogeneity in worker bounded rationality\, for understanding optimal incentives. Specifically\, the paper shows that an important asp ect of a workplace incentive scheme – dynamic incentives in the form of the so-called ratchet effect – can be a shrouded attribute that some wor kers neglect due to complexity. In field experiments within a firm\, and in online experiments with real effort tasks\, many workers make choice s consistent with being unaware of dynamic incentives. Changing the cont ract to make the dynamic incentives more transparent\, or looking at the sub-sample of workers with high cognitive ability\, a response to dynam ic incentives emerges. The results have several implications: a potentia l optimal degree of complexity\; heterogeneous effects of incentives dep ending on worker cognitive ability\; framing and structure of incentives may matter through the channel of complexity\; incentive effects may ch ange over time if learning reduces complexity\; firms may want to tailor incentives to the cognitive sophistication of their particular workforc e. LOCATION:S2.79 CATEGORIES:Applied & Development Economics Seminar LAST-MODIFIED:20211013T133918Z ORGANIZER;CN=Gill Gudger: END:VEVENT END:VCALENDAR