The name of the game is to keep your employees engaged in their work and make as much money as possible. In our basic principal-agent model where you’re trying to figure out how much to pay someone for their effort, it’s been empirically proven that a 100% commission rate let’s agents make enough money toContinue reading “How to pay who — risk and multidimensional roles”
Category Archives: Lectures
Week 0: Introduction to Personnel Economics
Exchanging your efforts in return for wages is quite possibly the most important transaction in the entire economy. The amount a firm pays you directly affects their bottom line profits and your quality of life. I’m not going to tell you how to live your best life, but for me, living my best life isContinue reading “Week 0: Introduction to Personnel Economics”
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