Self-Interest , Altruism , Incentives , and Agency Theory

@inproceedings{Jensen1994SelfInterestA,
  title={Self-Interest , Altruism , Incentives , and Agency Theory},
  author={Michael C. Jensen and Edsel Bryant Ford},
  year={1994}
}
Many people are suspicious of self-interest and incentives and oppose motivating humans through incentives. I analyze the meaning of incentives in the logic of choice and argue that it is inconceivable that purposeful actions are anything other than responses to incentives. Money is not always the best way to motivate people. But where money incentives are required, they are required precisely because people are motivated by things other than money. Self-interest is consistent with altruistic… CONTINUE READING
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