This paper studies the effect of performance measurement error and bias on the principal's choice of whether to appoint a supervisor who signals private, pre-decision, productivity information to a subordinate. Without a supervisor, both agents are privately informed and relative performance...

In this paper we analyze a dynamic agency problem where contracting parties do not know the agent's future productivity at the beginning of the relationship. We consider a two-period model where both the agent and the principal observe the agent's second-period productivity at the end of the...

I examine optimal incentives and performance measurement in a model where an agent has specific knowledge (in the sense of Jensen and Meckling) about the consequences of his actions for the principal. Contracts can be based both on "input" measures related to the agent's actions, and an "output"...

This study investigates whether having an upstream or downstream agent privately observe an interim performance measure and disseminating this measure to the other agent is valuable to the principal. The signal is informative about the upstream agent’s action and positively correlated with...

In this paper we analyze a dynamic agency problem where contracting parties do not know the agent's future productivity at the beginning of the relationship. We consider a two-period model where both the agent and the principal observe the agent's second-period productivity at the end of the...

This paper studies the effect of agents’ access to pre-decision information, depending on whether only group performance is rewarded or individual performance is rewarded. Pre-decision information only affects agents’ incentives, which in turn depend on the type of performance evaluation...