Productivity investment with hidden action

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2021
Volume: 190
Issue: C
Pages: 154-163

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

This paper considers a hidden action agency model in which an agent can be incentivized to simultaneously work and exert effort to increase productivity. When such multitasking is optimal, it is implemented through a higher powered contract, unlike the standard multitasking case. We determine conditions under which the principal wants to incentivize concurrent working and productivity investment and conditions under which the agent would want to participate. We show that these conditions are not the same. Multitasking is compared to separated tasks. Our results can help explain the skills gap.

Technical Details

RePEc Handle
repec:eee:jeborg:v:190:y:2021:i:c:p:154-163
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25