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Career Concerns and Asymmetric Missions

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Author Info
Nikolova, R.
Abstract

We use a simple career concerns model with two tasks and additive technology to shed some light on agent’s incentives for effort repartition. We establish the conditions under which the agent concentrates his effort on one of the tasks and discuss the implications of the in-formational structure on his choice. In particular, it is shown that increasing information precision may distort incentives and harms the principal’s interest.

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File URL: http://www.laser.univ-montp1.fr/Cahiers/cahier100104.pdf
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Publisher Info
Paper provided by LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1 in its series Cahiers du LASER (LASER Working Papers) with number 2004.10.

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Length: 8 pages
Date of creation: 2004
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Handle: RePEc:mop:lasrwp:2004.10

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Postal: Université de Montpellier 1, Faculté des Sciences Economiques, LASER, Av. de la Mer - Espace Richter, CS 79606, 34960 Montpellier Cedex 2, France
Web page: http://www.laser.univ-montp1.fr
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  1. Dewatripont, Mathias & Jewitt, Ian & Tirole, Jean, 1999. "The Economics of Career Concerns, Part II: Application to Missions and Accountability of Government Agencies," Review of Economic Studies, Blackwell Publishing, vol. 66(1), pages 199-217, January. [Downloadable!] (restricted)
  2. Fama, Eugene F, 1980. "Agency Problems and the Theory of the Firm," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 288-307, April. [Downloadable!] (restricted)
  3. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
  4. Holmstrom, Bengt, 1999. "Managerial Incentive Problems: A Dynamic Perspective," Review of Economic Studies, Blackwell Publishing, vol. 66(1), pages 169-82, January. [Downloadable!] (restricted)
  5. Bengt Holmstrom, 1999. "Managerial Incentive Problems: A Dynamic Perspective," NBER Working Papers 6875, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-10-29.

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