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Identifier to cite or link to this item: https://hdl.handle.net/10086/16801

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Title
Incentives, Gaming, and the Nonlinear Pay Scheme: Evidence from Personnel Data in a Large Japanese Auto Sales Firm
Creator
Creator Name
Tsuru, Tsuyoshi Tsuru, Tsuyoshi
都留, 康 都留, 康
ツル, ツヨシ ツル, ツヨシ
Affiliation
Affiliation Name
Hitotsubashi University
Editor
Contributor Name
Institute of Economic Research, Hitotsubashi University
Key Word
Compensation
Automobile Dealership
Incentives
Gaming
JEL
M12
M5
J31
J33
Abstract
This paper examines incentives and gaming behavior in a sales workforce using personnel records from one of Japan's largest auto sales chains. The company replaced a simple, linear compensation system in 2000 with nonlinear pay scheme kinked around a draw line. Econometric analysis indicates the following. First, the new pay scheme yields productivity increases, although a month-end deadline induces gaming behavior. Second, the incentive effect is weaker for used car sales staff than for new car sales staff. The difference can be attributed to disincentives such as smaller gross profits and larger servicing burdens that discouraged workers near the threshold from putting forth additional effort.
Publisher
Institute of Economic Research, Hitotsubashi University
Issued Date
2008-11
Language
English(eng)
Resource Type
technical report
Version Type
VoR
Is Part OfRelation -
Related Title
Discussion paper series. A ; No. a510_v2
ReplacesRelation -
Related Identifier
HDL
  http://hdl.handle.net/10086/16325
Relation
Related Title
This is a revised version of http://hdl.handle.net/10086/16325.
Related Identifier
URI
  http://www.ier.hit-u.ac.jp/English/
NCID
AA11476336
Number of Pages
23
Sponsorship
This study was funded by the Grant-in Aid for Scientific Research of the Japan Society for the Promotion of Science (Grant Number: 18530130) and the Nomura Foundation.
Edition
[Revised Version]
Appears in Collections
Discussion paper series / Institute of Economic Research, Hitotsubashi University
URL
https://hdl.handle.net/10086/16801