Why did the bankers behave so badly?

It is widely believed that bankers played an important role in causing the financial crisis that began in August 2007. In this paper we demonstrate that the compensation system in the financial services industry which rewards perceived talents, rather than long-term performance, leads rational bankers to exhibit belief persistence, overconfidence and confirmation bias

The effect of financial rewards on students' achievement: Evidence from a randomized experiment

In a randomized field experiment where first year university students could earn financial rewards for passing all first year requirements within one year we find small and non-significant average effects of financial incentives on the pass rate and the numbers of collected credit points. There is however evidence that high ability students collect significantly more credit points when assigned to (larger) reward groups. Low ability students collect less credit points when assigned to larger reward groups. After three years these effects have increased, suggesting dynamic spillovers. The small average effect in the population is therefore the sum of a positive effect for high ability students and a (partly) off-setting negative effect for low ability students. A negative effect of financial incentives for less able individuals is in line with research from psychology and recent economic laboratory experiments which shows that external rewards may be detrimental for intrinsic motivation.financial incentives, student achievement, randomized social experiment, heterogeneous treatment effects higher education policy

ROYALE: A Framework for Universally Composable Card Games with Financial Rewards and Penalties Enforcement

While many tailor made card game protocols are known, the vast majority of those suffer from three main issues: lack of mechanisms for distributing financial rewards and punishing cheaters, lack of composability guarantees and little flexibility, focusing on the specific game of poker. Even though folklore holds that poker protocols can be used to play any card game, this conjecture remains unproven and, in fact, does not hold for a number of protocols (including recent results). We both tackle the problem of constructing protocols for general card games and initiate a treatment of such protocols in the Universal Composability (UC) framework, introducing an ideal functionality that captures general card games constructed from a set of core card operations. Based on this formalism, we introduce Royale, the first UC-secure general card games which supports financial rewards/penalties enforcement. We remark that Royale also yields the first UC-secure poker protocol. Interestingly, Royale performs better than most previous works (that do not have composability guarantees), which we highlight through a detailed concrete complexity analysis and benchmarks from a prototype implementation

Analisis Pengaruh Kepemimpinan Transformasional, Komitmen Organisasional dan Imbalan Finansial terhadap Kepuasan Kerja Karyawan

This study aims to determine the effect of transformational leadership, organizational commitment, and financial rewards on employee job satisfaction. This research was conducted in Adma Umalas Villa with a number of samples were taken as many as 66 respondents, where respondents were all employees so that the sampling method used is the method of census. Multiple linear regression analysis was used to test hypotheses of the study. Based on the analysis we can conclude that the transformational leadership, organizational commitment and financial rewards positive and significant effect simultaneously on employee job satisfaction. Transformational leadership, organizational commitment and financial rewards positive and significant effect partially on employee job satisfaction

Nucleus accumbens activation mediates the influence of reward cues on financial risk-taking

In functional magnetic resonance imaging (FMRI) research, nucleus accumbens (NAcc) activation spontaneously increases prior to financial risk taking. Since anticipation of diverse rewards can increase NAcc activation, even incidental reward cues may influence financial risk-taking. Using event-related FMRI, we predicted and found that anticipation of viewing rewarding stimuli (erotic pictures for 15 heterosexual males) increased financial risk taking, and that this effect was partially mediated by increases in NAcc activation. These results are consistent with the notion that incidental reward cues influence financial risk taking by altering anticipatory affect, and so identify a neuropsychological mechanism that may underlie effective emotional appeals in financial, marketing, and political domains.neuroeconomics, neurofinance, brain, financial risk taking, risk preferences, decision making, nucleus accumbens, striatum, reward cues, FMRI, brain imaging

Total Rewards Compensation: A Viable Solution

Total rewards customer loyalty programs represent a viable solution for domestic gaming operators in today’s current economic environment. Total rewards customer loyalty programs provide domestic gaming operators with an unparalleled tool in understanding, identifying, and realizing their customer’s desires. The design of total rewards customer loyalty programs provides domestic gaming operators with the ability to remain fluid and allows quick adaptation to ever changing market conditions. Research suggests that total rewards customer loyalty programs provide domestic gaming operators with a viable financial solution that provides equitable value to customers alike. This paper will analyze the structure of customer loyalty programs by defining and examining its components. This paper will also identify and establish parameters necessary for domestic gaming operators to achieve a successful total rewards customer loyalty program. Finally, this paper will recommend that under current economic conditions that domestic gaming operators invest in the development of total rewards customer loyalty programs in order to drive customer retention and add to financial bottom line

Systematic review of the use of financial incentives in treatments for obesity and overweight

Nine studies met the criteria for inclusion in this systematic review of randomized controlled trials of treatments for obesity and overweight involving the use of financial incentives, with reported follow-up of at least 1 year. All included trials were of behavioural obesity treatments. Justification of sample size and blinding procedure were not mentioned in any study. Attrition was well described in three studies and no study was analysed on an intention to treat basis. Participants were mostly women recruited through media advertisements. Mean age ranged from 35.7 to 52.8 years, and mean body mass index from 29.3 to 31.8 kg m−2. Results from meta-analysis showed no significant effect of use of financial incentives on weight loss or maintenance at 12 months and 18 months. Further sub-analysis by mode of delivery and amount of incentives although also non-statistically significant were suggestive of very weak trends in favour of use of amounts greater than 1.2% personal disposable income, rewards for behaviour change rather than for weight, rewards based on group performance rather than for individual performance and rewards delivered by non-psychologists rather than delivered by psychologists.The Health Services Research Unit is funded by the Chief Scientist Office of the Scottish Executive Health Department. The views expressed here are those of the authors. Alison Avenell is funded by a Career Scientist Award from the Chief Scientist Office of the Scottish Executive Health Departmen

Human substantia nigra neurons encode unexpected financial rewards

The brain's sensitivity to unexpected outcomes plays a fundamental role in an\ud organism's ability to adapt and learn new behaviors. Emerging research suggests that\ud midbrain dopaminergic neurons encode these unexpected outcomes. We used\ud microelectrode recordings during deep brain stimulation surgery to study neuronal activity in\ud the human substantia nigra (SN) while patients with Parkinson's disease engaged in a\ud probabilistic learning task motivated by virtual financial rewards. Based on a model of the ..

Survey of the literature on innovation and economic performance

Despite very strong differences in their treatment of technological change in economic theory, both the neoclassical and the more Schumpetarian (and evolutionary) economic approaches often assume that market selection rewards the most innovative firms. However, despite such strong assumptions, empirical evidence on whether innovative firms perform better than non-innovative firms remains inconclusive. If innovators do not grow more, does this imply that market selection fails? And does the different impact of innovation on industrial performance (measured by firm growth and profitability) and financial performance (measured by market value and stock returns) signal differences in how industrial and financial markets react to firm level efforts around innovation? This discussion paper reviews the literature on the interaction between innovation and economic/financial performance, and outlines the way that work within FINNOV Work Package 2 (SELECTION), Co-Evolution of Industry Dynamics and Financial Dynamics, will contribute to better understanding this interaction

No margin, no mission? : a field experiment on incentives for public service delivery

The lecture was delivered by Oriana Bandiera on 19 November 2014.We conduct a field experiment to evaluate the effect of extrinsic rewards, both financial and non-financial, on the performance of agents recruited by a public health organization to promote HIV prevention and sell condoms. In this setting: (i) non-financial rewards are effective at improving performance; (ii) the effect of both types of rewards is stronger for pro-socially motivated agents; and (iii) both types of rewards are effective when their relative value is high. The findings illustrate that extrinsic rewards can improve the performance of agents engaged in public service delivery, and that non-financial rewards can be effective in settings where the power of financial incentives is limited