Economic and Game Theory
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Casual observation shows that these mechanisms are particularly strong in professions where "heroic" attitudes are important (obviously, armies, but one could also think of fire brigades or police departments). Some people have argued that the introduction of formal incentive schemes in such organisations could "destroy" the informal value system and move the organisation to a "bad" equilibrium. For instance, some analysts (mainly historians) of the Vietnam war have argued that the introduction of systems analysis and formal management systems in the American Army have fundamentally changed American officers attitudes away from fighting to merely managing the war.
Is anybody aware of existing work that has formalized this idea?
Laurent Franckx, MSc Department of Economics and Management Royal Military Academy Renaissancelaan, 30 1000 Brussel Belgium Laurent.Franckx@egeb.rma.ac.be