Artikel
Delegating performance evaluation
We study optimal incentive contracts with multiple agents when performance is evaluated by a reviewer. The reviewer may be biased in favor of the agents, but the degree of bias is unknown to the principal. We show that a contest, which is a contract in which the principal fixes a set of prizes to be allocated to the agents, is optimal. By using a contest, the principal can commit to sustaining incentives despite the reviewer's potential leniency bias. The optimal effort profile can be uniquely implemented by an all-pay auction with a cap. Our analysis has implications for various applications, such as the design of worker compensation or the allocation of research grants.
- Language
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Englisch
- Bibliographic citation
-
Journal: Theoretical Economics ; ISSN: 1555-7561 ; Volume: 15 ; Year: 2020 ; Issue: 2 ; Pages: 477-509 ; New Haven, CT: The Econometric Society
- Classification
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Wirtschaft
Institutions: Design, Formation, Operations, and Impact
Asymmetric and Private Information; Mechanism Design
Personnel Economics: Compensation and Compensation Methods and Their Effects
- Subject
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Subjective performance evaluation
mechanism design without money
optimal delegation
optimality of contests
- Event
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Geistige Schöpfung
- (who)
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Letina, Igor
Liu, Shuo
Netzer, Nick
- Event
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Veröffentlichung
- (who)
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The Econometric Society
- (where)
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New Haven, CT
- (when)
-
2020
- DOI
-
doi:10.3982/TE3570
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Letina, Igor
- Liu, Shuo
- Netzer, Nick
- The Econometric Society
Time of origin
- 2020
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