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Inefficient job assignments are usually explained with incomplete information about employees' abilities or contractual imperfections. We show that inefficient assignments arise even with full information about employees' types and complete contracts. Our further results provide a new...
Persistent link: https://www.econbiz.de/10013123052
I present a model in which a principal selects one among many agents to develop a project and influences the agent's ex post level of effort not by outcome-contingent rewards, but by the choice of the project's mission. The closer the project's mission to the agent's preferred mission, the...
Persistent link: https://www.econbiz.de/10010359776
I analyze a model in which a principal offers a contract to an agent and can influence the agent’s marginal return of effort by the choice of the project mission. The principal's and the agents' mission preferences are misaligned, and the agents have unobservable intrinsic motivation levels. I...
Persistent link: https://www.econbiz.de/10011561184
We investigate a team setting in which workers have different degrees of commitment to the outcome of their work. We … show that if there are complementarities in production and if the team manager has some information about team members … identifies that team governance is driven by the importance of tasks that cannot be monitored. The more important these tasks …
Persistent link: https://www.econbiz.de/10003592940
truthful. Still, the principal will always include such a bonus in the optimal contract, and possibly complement it with a team …
Persistent link: https://www.econbiz.de/10011380732
We investigate a team setting in which workers have different degrees of commitment to the outcome of their work. We … show that if there are complementarities in production and if the team manager has some information about team members … identifies that team governance is driven by the importance of tasks that cannot be monitored. The more important these tasks …
Persistent link: https://www.econbiz.de/10013316729
truthful. Still, the principal will always include such a bonus in the optimal contract, and possibly complement it with a team …
Persistent link: https://www.econbiz.de/10013142765
impact of individual and team incentives on the screening problem of employees with different degrees of motivation within …, reversal incentives occur. Conversely, reversal incentives do not arise if the principal uses team-incentives. If the principal … conditions each agent's wage on the effort of both agents and the agent's performance on the effort of his colleague (team …
Persistent link: https://www.econbiz.de/10013019355
We analyze the optimal combination of promotion tournaments and linear individual performance pay in an employment relationship. An agent's effort is non-observable and he has private information about his suitability for promotion. Thus, the two incentive schemes need to be combined to serve...
Persistent link: https://www.econbiz.de/10014048500
This paper models two key roles of subjective performance evaluations: their incentive role and their feedback role. The paper shows that the feedback role makes subjective pay feasible even without repeated interaction, as long as there exists some verifiable measure of performance. It also...
Persistent link: https://www.econbiz.de/10009388480