Adverse Specialization

S-Tier
Journal: Journal of Political Economy
Year: 2001
Volume: 109
Issue: 4
Pages: 864-899

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We analyze a multiple-activity, principal-agent model in which the activities are naturally substitutable for the agent and complementary for the principal. A basic result is that the optimal compensation must cause the agent to view the activities as complements. This complementarity is achieved by employing a compensation scheme that is typically nonmonotone and makes success on multiple dimensions the sole source of large rewards. A number of empirical implications follow, along with explanations for some existing empirical findings. We also discuss applications to compensation in specific occupations.

Technical Details

RePEc Handle
repec:ucp:jpolec:v:109:y:2001:i:4:p:864-899
Journal Field
General
Author Count
2
Added to Database
2026-01-25