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Information Design and Career Concerns

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  • David Rodina

Abstract

This paper studies the interplay between information and incentives in principal-agent relationships with career concerns. I derive conditions for when more precise information about performance or more uncertainty about the agent's ability lead to stronger incentives due to career concerns, absent any ad-hoc restrictions on the production technology or set of information structures. A key condition for deriving these comparative statics is how e ort changes the informativeness of performance signals regarding ability. However, more sophisticated information revelation technologies that are implicitly ruled out in the literature overturn commonly held assertions regarding information design and career concerns.

Suggested Citation

  • David Rodina, 2020. "Information Design and Career Concerns," CRC TR 224 Discussion Paper Series crctr224_2020_220, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2020_220
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    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp220
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    Cited by:

    1. Gerardi, Dino & Grillo, Edoardo & Monzón, Ignacio, 2022. "The perils of friendly oversight," Journal of Economic Theory, Elsevier, vol. 204(C).
    2. Sergio Cappellini, 2022. "Optimal Unemployment Insurance with Worker Profiling," "Marco Fanno" Working Papers 0294, Dipartimento di Scienze Economiche "Marco Fanno".

    More about this item

    Keywords

    Information Design;

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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