The Quality of Information and Incentives for Effort∗
نویسندگان
چکیده
We study the relationship between the precision of information about the performance of an agent in a market, and the incentives this agent has for exerting effort to produce high quality. We show that this relationship is not monotonic. There exists a threshold beyond which any further improvement in the precision of information weakens the agent’s incentive to produce high quality. Accordingly, both very precise and very imprecise information about the agent’s performance may destroy its incentive to exert effort. Applications to real markets are discussed. Jel Classification numbers:
منابع مشابه
Designing a Model and Explaining Persuasion Techniques in Disclosure Financial Reports by Companies with Job Acquisition Incentives Bias CEO
Increasing the regulatory environment and expanding the scope of the regulatory standards for financial reporting has, over the past few years, reduced the cost of representation and information asymmetry and increased the level of corporate disclosure of corporate financial statements. But one of the endogenous dimensions of quality that prevents the disclosure of financial statements is a mat...
متن کاملStudying the Relationship between the Financial Incentives of Board Members and Disclosure of Corporate Risk, Emphasizing the Levels of Corporate Performance and Risk
The study aims to investigate the relationship between the financial incentives of board members and disclosure of corporate risk, emphasizing the levels of corporate performance and risk in Iran. The research sample includes 98 listed firms in Tehran Stock Exchange during 2011-2015 (490 years-firms); the firms have selected by using a systematic removal method. Regarding the aim, the present...
متن کاملThe Relationship between Quality of Parental Homework Involvement and Academic Functioning in the Reading Domain among Sixth Grade Students
This study was undertaken to investigate the relationship between quality of parental homework involvement and academic functioning in the reading domain (reading score, homework effort, and academic procrastination) among students. The statistical population of the study was comprised of all sixth graders in Ardakan, Yazd Province, in school year 2014-15. The sample consisted of 366 students w...
متن کاملPaying for Performance in Healthcare Organisations
Aligning Financial Incentives (FIs) to health policy goals is becoming increasingly popular. In many cases, such initiatives have failed to deliver anticipated benefits. Attributing this to the actions of self-interested and resistant professionals is not an entirely helpful approach. It is important to avoid simplistic assumptions to build knowledge of how and why schemes are implemented in pr...
متن کاملPrice regulation and quality
* I am grateful to Jeffrey Bernstein for helpful discussions. This paper has also benefited from discussions with Irv Emmons, Neil Langland and staff members at numerous public service commissions. The usual caveat applies. Abstract A growing concern on the part of regulators is that price regulation may weaken incentives for investment in service quality. Participation by the firm in complemen...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2004