Monitoring Teams

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2024
Volume: 16
Issue: 3
Pages: 134-61

Authors (3)

Marina Halac (Yale University) Ilan Kremer (not in RePEc) Eyal Winter (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

A principal incentivizes a group of agents to work by choosing a monitoring structure and a scheme of performance-contingent rewards. The monitoring structure partitions the set of agents into monitoring teams, each delivering a signal of joint performance. We show that unlike under partial implementation, the principal always exhausts her monitoring capacity to optimally implement work as a unique outcome. Optimal monitoring teams are homogeneous between them: equally sized and with agents allocated in an anti-assortative fashion. Higher-effort-cost agents receive lower rents, and they tend to be monitored more closely than lower-effort-cost agents when the principal's allocation is constrained.

Technical Details

RePEc Handle
repec:aea:aejmic:v:16:y:2024:i:3:p:134-61
Journal Field
General
Author Count
3
Added to Database
2026-01-25