While effort averse agents provide only minimum effort if not monitored,other agents may be committed to the organizational goal. Our study allows for a continuum of types,representing different degrees of intrinsic work motivation. This results in two different organizational forms,“volunteer organizations ” and “companies, ” which may also attract less committed employees who require output-dependent incentive contracts to elicit effort. Generally,only organizations with significant likelihood to attract motivated volunteers can survive as volunteer organizations whereas “firms ” should result when monitoring costs are moderate and effort is critical to the organization’s success
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