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Should principals explain and justify their evaluations? Suppose the principal's evaluation is private information, but she can provide justification by sending a costly cheap-talk message. If she does not provide justification, her message space is restricted, but the message is costless. I...
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Consider managers evaluating their employees' performances. Should managers justify their subjective evaluations … attributed to biased managers. I show that these effects occur in optimal contracts without any biased behavior. …
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discrete bonuses after they do sufficiently well. By adjusting monitoring intensity and communication of performance, the …
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This note reconsiders communication between an informed expert and an uninformed decision maker with a strategic … mediator in a discrete Crawford and Sobel (1982) setting. We show that a strategic mediator may improve communication even when … he is biased into the same direction as the expert. The mediator improves communication, however, only if some …
Persistent link: https://www.econbiz.de/10008906024
This note reconsiders communication between an informed expert and an uninformed decision maker with a strategic … mediator in a discrete Crawford and Sobel (1982) setting. We show that a strategic mediator may improve communication even when … he is biased into the same direction as the expert. The mediator improves communication, however, only if some …
Persistent link: https://www.econbiz.de/10009408044
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