Wasteful Sanctions, Underperformance, and Endogenous Supervision

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2014
Volume: 6
Issue: 4
Pages: 326-61

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

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

Abstract

We study optimal contracting in team settings where agents have many opportunities to shirk, task-level monitoring is needed to provide useful incentives, and it is difficult to write individual performance into formal contracts. Incentives are provided informally, using wasteful sanctions like guilt and shame, or slowed promotion. These features give rise to optimal contracts with under performance, forgiving sanctioning schemes, and endogenous supervision structures. Agents optimally take on more assigned tasks than they intend to complete, leading to the concentration of supervisory responsibility in the hands of one or two agents.

Technical Details

RePEc Handle
repec:aea:aejmic:v:6:y:2014:i:4:p:326-61
Journal Field
General
Author Count
2
Added to Database
2026-01-26