Showing 1 - 10 of 62,793
This paper analyzes a multi-task agency model with a risk-neutral and financially constrained agent. The agent's performance evaluation is thereby incongruent, i.e. it does not perfectly reflect the relative contribution of the agent's multi-dimensional effort to firm's profit. This paper...
Persistent link: https://www.econbiz.de/10005621240
It has been argued in the multitask agency literature that effort distortion can be mitigated by applying several …
Persistent link: https://www.econbiz.de/10012716711
This Paper examines optimal incentives and performance measurement in a setting where an agent has specific knowledge … choice of performance measures and incentives depends on the agent’s knowledge, environmental risk, technological uncertainty …
Persistent link: https://www.econbiz.de/10005504471
"Implicit Contracts, incentive compatibility, and involuntary unemployment" (MacLeod and Malcomson, 1989) remains our most highly cited work. We briefly review the development of this paper and of our subsequent related work, and conclude with reflections on the future of relational contract...
Persistent link: https://www.econbiz.de/10013500553
This paper analyzes the impact of heterogeneous (social) preferences on the weighting and combination of performance measures as well as on a firm's profitability. We consider rivalry, egoism and altruism as extreme forms within the continuum of possible preferences and show that the principal...
Persistent link: https://www.econbiz.de/10010442170
This paper addresses the question, what metrics should be used for performance evaluation and in particular how they should be weighted and combined in the presence of technological interdependencies when the agents exhibit variedly strong developed rivalry. We find that the principal reacts to...
Persistent link: https://www.econbiz.de/10010442171
This chapter reviews the literature on the theory of relational incentive contracts.  It motivates the discussion by the classic applications of relational contracts to the GM-Fisher Body relationship and the relationships between Japanese automobile manufacturers and their subcontractors.  It...
Persistent link: https://www.econbiz.de/10008671389
, organizations endowed with firing threats significantly underperformed those using individual incentives. Our analysis also …
Persistent link: https://www.econbiz.de/10010817444
problem to design a contract that provides an expert with incentives to acquire and reveal information. We show that it is in … provision of incentives when the realized state is not verifiable …
Persistent link: https://www.econbiz.de/10010263103
leads to weaker incentives for effort, compared with non-integration. Our theory makes minimal assumptions about the … managers. The division managers' job is to create profitable investment projects. Giving the managers incentives to do so …' incentives. The resulting tradeoff between a better use of resources and diminished incentives for effort determines whether …
Persistent link: https://www.econbiz.de/10010268001