Praag, Mirjam van; Sloof, Randolph - Institute for the Study of Labor (IZA) - 2007
Theoretical analyses of (optimal) performance measures are typically performed within the realm of the linear agency … noise in the performance measure. In contrast, expectancy theory as developed by psychologists predicts lower effort levels … for noisier performance measures. We conduct a real effort laboratory experiment and find that effort levels are invariant …