Fairness and Incentives in a Multi-Task Principal-Agent Model

Fairness and Incentives in a Multi-task Principal–Agent Model*

This paper reports on a two-task principal–agent experiment in which only one task is contractible. The principal can either offer a piece-rate contract or a (voluntary) bonus to the agent. Bonus contracts strongly outperform piece-rate contracts. Many principals reward high effort on both tasks with substantial bonuses. Agents anticipate this and provide high effort on both tasks. In contrast,...

متن کامل

Fairness and Incentives in a Multi - Task Principal - Agent Model Ernst

This paper reports on a two-task principal-agent experiment in which only one task is contractible. The principal can either offer a piece-rate contract or a (voluntary) bonus to the agent. Bonus contracts strongly outperform piece rate contracts. Many principals reward high efforts on both tasks with substantial bonuses. Agents anticipate this and provide high efforts on both tasks. In contras...

متن کامل

Ernst Fehr und Klaus M . Schmidt : Fairness and Incentives in a Multi - Task Principal - Agent

This paper reports on a two-task principal-agent experiment in which only one task is contractible. The principal can either offer a piece-rate contract or a (voluntary) bonus to the agent. Bonus contracts strongly outperform piece rate contracts. Many principals reward high efforts on both tasks with substantial bonuses. Agents anticipate this and provide high efforts on both tasks. In contras...

متن کامل

Ernst Fehr ; Klaus M . Schmidt : Fairness and Incentives in a Multi - Task Principal - Agent

This paper reports on a two-task principal-agent experiment in which only one task is contractible. The principal can either offer a piece-rate contract or a (voluntary) bonus to the agent. Bonus contracts strongly outperform piece rate contracts. Many principals reward high efforts on both tasks with substantial bonuses. Agents anticipate this and provide high efforts on both tasks. In contras...

متن کامل

Task-Specific Abilities in Multi-Task Principal-Agent Relationships∗

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 p...

متن کامل

Fairness and Incentives in a Multi-Task Principal-Agent Model

نویسندگان

چکیده

منابع مشابه