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This paper studies how firms can efficiently incentivize supervisors to truthfully report employee performance. To this end, I develop a dynamic principal-supervisor-agent model. The supervisor is either selfish or altruistic towards the agent, which is observable to the agent but not to the...
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We conduct a field experiment among 189 stores of a retail chain to study dynamic incentive effects of relative … performance of the treatment stores. As predicted by theory, treatment stores that lag far behind do not respond to the incentives …
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