Conflicting tasks and moral hazard: Theory and experimental evidence

B-Tier
Journal: European Economic Review
Year: 2011
Volume: 55
Issue: 8
Pages: 1094-1108

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We study a multi-task principal-agent problem in which tasks can be in direct conflict with each other. In theory, it is difficult to induce a single agent to exert efforts in two conflicting tasks, because effort in one task decreases the success probability of the other task. We have conducted an experiment in which we find strong support for the relevance of this incentive problem. In the presence of conflict, subjects choose two efforts significantly less often when both tasks are assigned to a single agent than when there are two agents each in charge of one task.

Technical Details

RePEc Handle
repec:eee:eecrev:v:55:y:2011:i:8:p:1094-1108
Journal Field
General
Author Count
2
Added to Database
2026-01-25