This paper experimentally investigates the impact of different pay and relative performance information policies on … employee effort. We explore three information policies: No feedback about relative performance, feedback given halfway through …-takes-all tournament. We find that, regardless of the pay scheme used, feedback does not improve performance. There are no significant peer …

performance measures. We show that such an index contract may indeed be optimal if performance measures are non-verifiable so that … where the agent gets a bonus if a weighted sum of per-formance outcomes on the various tasks (the index) exceeds a hurdle … this reason be beneficial. For a similar reason, the principal may also want to include verifiable performance measures in …

“subjective performance evaluation”). First, we show that transparency triggers social comparisons that require the organization …

performance, and thus as a solution to the principal-agent dilemma created by the separation of ownership and management in …