Moving the Goalposts

S-Tier
Journal: Journal of Political Economy
Year: 2020
Volume: 128
Issue: 2
Pages: 468 - 506

Authors (2)

Jeffrey C. Ely (not in RePEc) Martin Szydlowski (University of Minnesota)

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 study information as an incentive device in a dynamic moral hazard framework. An agent works on a task of uncertain difficulty, modeled as the duration of required effort. The principal knows the task difficulty and provides information over time. The optimal mechanism features moving goalposts: an initial disclosure makes the agent sufficiently optimistic that the task is easy. If the task is indeed difficult, the agent is told this only after working long enough to put the difficult task within reach. The agent then completes the difficult task even though he never would have chosen to at the outset.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/704387
Journal Field
General
Author Count
2
Added to Database
2026-01-29