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Task-specific abilities in multi-task principal-agent relationships

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  • Thiele, Veikko

Abstract

This paper analyzes a multi-task agency framework where the agent exhibits task-specific abilities. It illustrates how incentive contracts account for the agent's task-specific abilities if contractible performance measures do not reflect the agent's multidimensional contribution to firm value. This paper further sheds light on potential ranking criteria for performance measures in multi-task principal-agent relationships. It demonstrates that performance measures in multi-task agencies cannot necessarily be compared by their respective signal-to-noise ratio as in single-task agency relationships. In fact, it is indispensable to take the induced effort distortion and the measure-cost efficiency into consideration--both determined by the agent's task-specific abilities.

Suggested Citation

  • Thiele, Veikko, 2010. "Task-specific abilities in multi-task principal-agent relationships," Labour Economics, Elsevier, vol. 17(4), pages 690-698, August.
    • Handle: RePEc:eee:labeco:v:17:y:2010:i:4:p:690-698
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    2. Yann Kossi & Jean-Yves Lesueur & Mareva Sabatier, 2016. "Publish or teach? The role of the scientific environment on academics’ multitasking," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(3), pages 487-506.
    3. Zaiceva, Anzelika, 2022. "Multitasking," IZA Discussion Papers 15681, Institute of Labor Economics (IZA).
    4. Trude Gunnes, 2021. "Norms and financial incentives: A model of how to fund universities," Review of Economics and Institutions, Università di Perugia, vol. 12(1).
    5. Meng, Dawen & Tian, Guoqiang, 2013. "Multi-task incentive contract and performance measurement with multidimensional types," Games and Economic Behavior, Elsevier, vol. 77(1), pages 377-404.
    6. Charlene M. Kalenkoski & Gigi Foster, 2015. "Measuring the relative productivity of multitasking to sole-tasking in household production: experimental evidence," Applied Economics, Taylor & Francis Journals, vol. 47(18), pages 1847-1862, April.
    7. Rishi Basak & Edwin van der Werf, 2019. "Accountability mechanisms in international climate change financing," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 19(3), pages 297-313, June.
    8. Zaiceva-Razzolini, Anzelika, 2022. "Multitasking," GLO Discussion Paper Series 1173, Global Labor Organization (GLO).
    9. Zaiceva, A., 2022. "Multitasking," MERIT Working Papers 2022-031, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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