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noise in the performance measure. In contrast, expectancy theory as developed by psychologists predicts lower effort levels …
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We study interfirm competition on a product market where effort decisions are delegated to the firms' workers. Intrafirm organization is captured by a principal-multiagent framework where firm owners implement alternative compensation schemes for the workers. We show that the value of delegation...
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additional stage to the game, the accounting stage, it becomes clear that the incentives are inverse to those in Ronen and … they indicate the true information in the accounting stage. If they choose to report untruthfully then they suffer a loss …
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