performance index xceeds a threshold, like the FOA contract of Levin (2003), but the threshold can be set differently. We next … informativeness criterion sheds light on the nature of an ideal performance measure in relational contracting …

performance index exceeds a threshold, like the FOA contract of Levin (2003), but the threshold can be set differently. We next … informativeness criterion sheds light on the nature of an ideal performance measure in relational contracting …

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 …

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 …

performance measures. However, there is no formal incentive model that actually describe this kind of index contracts as an … optimal solution. In this paper, we show that an index contract may indeed be optimal if performance measures are non … sum of performance outcomes on the various tasks (the index) exceeds a hurdle. For a parametric (multinormal …

performance. The two cases reveal that it may be optimal to organize production as a team where only aggregate output is …

We analyze a situation where common noise makes compensation based on relative performance evaluation (RPE) desirable …

performance, in a relational contract between a principal and a team of two agents. A main result is that the optimal incentive … will see a higher frequency of relative performance evaluation (RPE) - and schemes that lie close to independent … performance evaluation - as we move from low-productive to high-productive environments. In particular, it is shown that if effort …