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We caution that, although potential interaction might possibly seem to imply that CRF antagonists could be used therapeutically to reduce excessive incentive salience in stress, the actual effect of CRF receptor manipulation on dopamine release in nucleus accumbens may involve complexities that could complicate such predictions.
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Corporations have been criticized for providing executives with excessive incentives to focus on short-term performance.
Be that as it may, any attempt to eliminate excessive incentives for risk-taking requires a full understanding of the sources of such incentives.
This, he added, "would make clear the excessive incentives they have to mis-sell the variable annuity, which has been the cause of regulatory problems in that area".
We show that information-based bank runs may be inefficient because the deposit contract designed to provide liquidity induces depositors to have excessive incentives to withdraw.
"With Enron, you saw excessive incentives within that company to pump up their per-share earnings to keep their options in the money at all times," Mr. Fitzgerald said.
It is now widely accepted that compensation structures in financial firms should be designed to avoid excessive incentives for risk-taking and that doing so requires tying executive compensation to long-term results and preventing cashing out of large amounts of compensation on the basis of short-term results.
In particular, excessive incentives to take risks might have been generated by executives' ability to cash out compensation based on the firms' short-term results.
Disastrous past industry practices – from bloated inventories to excessive sales incentives – have been curbed.
He also mentioned the Gulf oil spill, where excessive output incentives may have led to safety compromises.
Regardless of the social value of accuracy, litigants generally gain by devoting resources toward proof of damages, leading often to socially excessive private incentives to establish damages.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com