Should principals explain and justify their evaluations? Suppose the principal's evaluation is private information, but … space is restricted, but the message is costless. I show that the principal justifies her evaluation to the agent if the … evaluation indicates bad performance. The justification assures the agent that the principal has not distorted the evaluation …

? Suppose a manager's evaluation is private information. Justifying her evaluation is costly but limits the principal's scope … for distorting her evaluation of the employee. I show that the manager justifies her evaluation if and only if the … employee's performance was poor. The justification assures the employee that the manager has not distorted the evaluation …