Behavioral Policy Speaker Series - Oriana Bandiera: "Social Incentives in Organizations"
Audience:Open to the Public
Kahneman-Treisman Center for Behavioral Science & Public Policy
Social incentives determine the choice of effort at the margin (they are incentives) and they are shaped by the social groups individuals are embedded in both inside and outside the organization they work for (they are social). Bandiera, Professor of Economics at the London School of Economics, reviews evidence on social incentives in organizations and proposes a taxonomy based on the nature of the social group and on the nature of the social preferences that underpin the incentives. The evidence indicates that: (i) individuals partially internalize the effect of their actions on others; (ii) individuals care about their relative position; (iii) social incentives affect how individuals respond to financial incentives and vice-versa.