All-or-Nothing Monitoring: Comment

S-Tier
Journal: American Economic Review
Year: 2010
Volume: 100
Issue: 1
Pages: 625-27

Score contribution per author:

8.073 = (α=2.02 / 1 authors) × 4.0x S-tier

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

Abstract

Zhao (2008) presents an interesting "all-or-nothing monitoring" result for a multitask moral hazard agency problem with partial effort observation. We argue that the optimal contract based on the non-verifiable observation of the agent's effort in Zhao (2008) can be regarded as a limitation on the incentive schemes available to the principal. I then propose some arguably more appropriate approaches for analyzing such agency problems. (D82, D86, M54)

Technical Details

RePEc Handle
repec:aea:aecrev:v:100:y:2010:i:1:p:625-27
Journal Field
General
Author Count
1
Added to Database
2026-01-25