When people undertake a task for themselves or the organization in which they work, they often set the target outcome of the task as their goal. We suggest that people take this goal as their reference point around which they evaluate their performance as a gain or loss. We also suggest that...

We explain why organizations that limit the voice of their agents can benefit from granting them an exit option. We study a hierarchy with a principal, a productive supervisor and an agent. Communication is imperfect in that only the supervisor can communicate with the principal, while the agent...