Consider an apple orchard owner deciding how to incentivize his fruit pickers.He pays per pound harvested but adjusts the compensation rate higher during poor harvest seasons.As a consequence

A) The compensation rate should be fixed at all times
B) The pickers might try to game the system by discouraging others from harvesting too much
C) The pickers would claim good harvests in order to be paid higher piece rates even during poor harvest seasons
D) None of the above

Question

​Consider an apple orchard owner deciding how to incentivize his fruit pickers.He pays per pound harvested but adjusts the compensation rate higher during poor harvest seasons.As a consequenceA) ​The compensation rate should be fixed at all timesB) The pickers might try to game the system by discouraging others from harvesting too muchC) The pickers would claim good harvests in order to be paid higher piece rates even during poor harvest seasonsD) ​None of the above

Jenny Guerrero · Accepted Answer

Final Answer : B, Explanation :  If the compensation rate is adjusted higher during poor harvest seasons, pickers might try to game the system by discouraging others from harvesting too much in order to keep the harvest low and the compensation rate high. This could lead to a decrease in overall productivity and is not an ideal situation for the orchard owner.

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