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We study optimal incentive contracts with multiple agents when performance evaluation is delegated to a reviewer. The reviewer may be biased in favor of the agents, but the degree of the bias is unknown to the principal. We show that a contest, which is a contract in which the principal...
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We analyze the optimal interaction between monetary incentives and decision-making authority with respect to task … task herself or delegate the decision-making authority to the informed agent. We find that, if the principal can employ a … evidence on the relation between incentives and the delegation of decision rights …
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our theory, DIH achieves better outcomes in stores that have better incentives, larger shares of repeat customers, and …
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of authority balances the value of the manager's decision-making expertise against the cost of ensuring that the manager … to screen for managers of high ability. Decentralization of decision making may thus occur even if the static benefits …
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-agent theory, I find that the extent of incentive compensation does not play a significant role in explaining the extent of …
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principal also has the option to delegate an additional production-relevant decision to a team member. We provide conditions … information regarding the effient decision. We show that implicit incentives under delegation are strongest in diverse teams and …
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