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Monitoring Team Production by Design

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  • G. Bono

Abstract

This work addresses the optimal design of the monitoring technology for a team when collective liability can not form. It shows that the principal s optimal design choice is then to concentrate monitoring on the less productive agent in a team. By controlling the less productive agent she fully discipline the more productive. This result helps in studying the interplay between the institutional set-up and the technological capabilities of teams

Suggested Citation

  • G. Bono, 2005. "Monitoring Team Production by Design," Working Papers 540, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:540
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    References listed on IDEAS

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    1. Shingo Ishiguro & Hideshi Itoh, 2001. "Moral Hazard and Renegotiation with Multiple Agents," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(1), pages 1-20.
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