Re: [OPE] socialist planning in capitalist firms

From: Alejandro Agafonow <>
Date: Tue Jun 08 2010 - 11:51:20 EDT

I think that there are experimental results in support of claims for and against pay-for-performance systems and other incentive-driven devises. Our problems are more complex than finding circumstantial evidences.   A. Agafonow ________________________________ De: Gerald Levy <> Para: Outline on Political Economy mailing list <> Enviado: sáb,5 junio, 2010 22:35 Asunto: Re: [OPE] socialist planning in capitalist firms > But my point is that evaluating managerial inputs in person hours is not a > good answer because > you are not measuring the falling in managerial quality as a larger degree > of centralisation goes by. Hi Alejandro: A few days ago I was listening to an interview on the NPR (National Public Radio) show "All Things Considered"  of mainstream behavioral economist, Dan Ariely.  He created some experiments to determine whether it's the case that performance tends to increase as anticipated rewards increase and the results seem to indicate that if  the compensation aystem  is based on pre-determined performance goals (i.e. a material incentive plan)  then the actual performance of subjects tended to *decrease* as the expectation  of additional reward created additional stress which impeded the subjects' performance. This would suggest that pay-for-performance systems for managers (and others) is a problematic system. In solidarity, Jerry _______________________________________________ ope mailing list

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