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Delegating performance evaluation
Theoretical Economics ( IF 1.671 ) Pub Date : 2020-01-01 , DOI: 10.3982/te3570
Igor Letina 1 , Shuo Liu 2 , Nick Netzer 3
Affiliation  

We study optimal incentive contracts with multiple agents when performance evaluation is delegated to a reviewer. The reviewer may be biased in favor of the agents, but the degree of bias is unknown to the principal. We show that a contest, which is a contract in which the principal determines a set of prizes to be allocated to the agents, is optimal. By using a contest, the principal can commit to sustaining incentives despite the reviewer's potential leniency bias. The optimal effort profile can be uniquely implemented by an all-pay auction with a cap. Our analysis has implications for applications as diverse as the design of worker compensation, the awarding of research grants, and the allocation of foreign aid.

中文翻译:

委派绩效评估

当绩效评估委托给审查者时,我们研究了与多个代理的最佳激励合同。审稿人可能偏向于代理人,但委托人不知道偏向的程度。我们证明了一个竞赛,即委托人确定要分配给代理的一组奖品的合同,是最佳的。通过使用竞赛,校长可以承诺维持激励措施,尽管审阅者可能有宽大处理的偏见。最佳努力配置文件可以通过具有上限的全付费拍卖来唯一地实现。我们的分析对诸如工人薪酬设计、研究资助的授予和外援分配等多种应用具有影响。
更新日期:2020-01-01
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