monitoring exhibit opposite patterns in a hierarchy. That is, at higher hierarchical levels effort incentives are higher but …We consider a principal-multi agent model that features a three-tier hierarchy, defined as a setting where the … than comparable agents elsewhere in the hierarchy. The flip side is that an agent-manager entrusted with authority to …

hierarchy. We identify a problem we denote as "the principal's moral hazard constraint" which can result in an inefficient … incentives scheme, the principal's self-interest may stand in the way of implementing it. In these cases, the bonuses large …