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Zur verzerrten Performancemessung in Agency-Modellen

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  • Michael Kopel

    (Technische Universität Wien)

Abstract

Summary A central assumption in many models on incentive contracting is that the principal’s objective is always a contractible performance measure. In many situations this assumption is not supportable, and for an evaluation of the agent’s effort alternative and oftentimes distortionary performance measures must be used. Under these circumstances the question arises which factors determine the quality of a good performance measure. We show that the quality of such an alternative measure is determined by the fact how it responds to the agent’s actions in relation to the way the principal’s objective responds to these actions. Furthermore, it is demonstrated that, in general, inefficiency occurs even if the agent is risk neutral.

Suggested Citation

  • Michael Kopel, 1998. "Zur verzerrten Performancemessung in Agency-Modellen," Schmalenbach Journal of Business Research, Springer, vol. 50(6), pages 531-550, June.
    • Handle: RePEc:spr:sjobre:v:50:y:1998:i:6:d:10.1007_bf03371520
    DOI: 10.1007/BF03371520
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    5. George Baker & Robert Gibbons & Kevin J. Murphy, 1994. "Subjective Performance Measures in Optimal Incentive Contracts," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(4), pages 1125-1156.
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    Cited by:

    1. Michael Krapp, 2000. "Relative Leistungsbewertung im dynamischen Kontext — Eine Analyse der Kollusionsproblematik bei wiederholter Delegation," Schmalenbach Journal of Business Research, Springer, vol. 52(3), pages 257-277, May.

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