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Monthly Archives: January 2019
Perverse Incentives – Part 2
In the previous article (see Perverse Incentives – Part 1) I discussed why PBC practitioners need to be aware of the potential for perverse incentives in our PBC arrangements. In this article let’s look at how PBC practitioners, both buyers and … Continue reading
Perverse Incentives – Part 1
“Common sense is not so common.” Voltaire In a previous article (see Designing Successful Performance Based Contracts) I highlighted three tests for a highly successful Performance Based Contract (PBC). These were: Does the PBC drives the right behaviour in the … Continue reading