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many supervisors tend to assess the employees too good (leniency bias) and that the appraisals hardly vary across employees … of a certain supervisor (centrality bias). We explain these two biases in a model with a supervisor, who has preferences … effort costs and inequality aversion. -- Appraisals ; inequality aversion ; performance evaluation ; centrality bias …
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This paper proposes a model of asset-market equilibrium with portfolio delegation and optimal fee contracts. Fund managers and investors strategically interact to determine funds' investment profiles, while they share portfolio risk through fee contracts. In equilibrium, their investment...
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