, investors make managers' fees more sensitive to performance and benchmark performance against a market index. This makes … overvalued assets. Socially optimal contracts provide steeper performance incentives and cause larger pricing distortions than …

employee's performance was poor. The justification assures the employee that the manager has not distorted the evaluation … downwards. For good performance, however, the manager pays a constant high wage without justification. The empirical literature … demonstrates that subjective evaluations are lenient and discriminate poorly between good performance levels. This pattern was …

evaluation indicates bad performance. The justification assures the agent that the principal has not distorted the evaluation … downwards. In equilibrium, the wage increases in the agent's performance, when the principal justifies her evaluation. For good … performance, however, the principal pays a constant high wage without justification. …

employee’s performance was poor. The justification assures the employee that the manager has not distorted the evaluation … downwards. For good performance, however, the manager pays a constant high wage without justification. The empirical literature … demonstrates that subjective evaluations are lenient and discriminate poorly between good performance levels. This pattern was …

employee’s performance was poor. The justification assures the employee that the manager has not distorted the evaluation … downwards. For good performance, however, the manager pays a constant high wage without justification. The empirical literature … demonstrates that subjective evaluations are lenient and discriminate poorly between good performance levels. This pattern was …