A firm is considering two policies to increase worker output. The first policy would involve an increased wage described as an incentive for workers to increase their effort. The second policy is to...

A firm is considering two policies to increase worker output. The first policy would involve an increased wage described as an incentive for workers to increase their effort. The second policy is to announce a voluntary bonus for those workers whose effort is deemed to be extraordinary. Using insights from behavioral economics, which policy do you believe will be the more effective?