Firms face an optimization problem that requires a maximal quantity output given a quality constraint. How firms should incentivize quantity and quality to meet these dual goals remains an open question, potentially due to limitations of field data. We provide a theoretical model and conduct an experiment in which participants are paid for both quantity and quality of a real effort task. Consistent with the theoretical predictions, higher quality incentives encourage participants to shift their attention from quantity to quality, and higher quality incentives reduce inefficient decision-making. We also observe behavioral components in responsiveness to the quality incentive.
Rubin, J., Samek, A., & Sheremeta, R.M. (2016). Incentivizing quantity and quality of output: An experimental investigation of the quantity-quality trade-off. ESI Working Paper 16-01. Retrieved from http://digitalcommons.chapman.edu/esi_working_papers/179/