This paper shows that monitoring too much a partner in the initial phase of a relationship may not be optimal if the … is simple: by monitoring too much we learn less on how the partner will behave when he is not monitored. Only by giving …

We study the impact of monitoring in a workplace context where both firms and employees are unable to perfectly observe … the individual worker contribution to total output. Therefore, in our setting monitoring is not aimed at reducing … monitoring. Workers' stance towards monitoring is ambiguous and depends on risk aversion and the disutility of effort. Our …