Task-specific abilities in multi-task principal-agent relationships

B-Tier
Journal: Labour Economics
Year: 2010
Volume: 17
Issue: 4
Pages: 690-698

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 analyzes a multi-task agency framework where the agent exhibits task-specific abilities. It illustrates how incentive contracts account for the agent's task-specific abilities if contractible performance measures do not reflect the agent's multidimensional contribution to firm value. This paper further sheds light on potential ranking criteria for performance measures in multi-task principal-agent relationships. It demonstrates that performance measures in multi-task agencies cannot necessarily be compared by their respective signal-to-noise ratio as in single-task agency relationships. In fact, it is indispensable to take the induced effort distortion and the measure-cost efficiency into consideration--both determined by the agent's task-specific abilities.

Technical Details

RePEc Handle
repec:eee:labeco:v:17:y:2010:i:4:p:690-698
Journal Field
Labor
Author Count
1
Added to Database
2026-01-29