Push or Pull? : Performance-Pay, Incentives, and Information

Rietzke, David and Chen, Yu (2020) Push or Pull? : Performance-Pay, Incentives, and Information. RAND Journal of Economics, 51 (1). pp. 301-317. ISSN 0741-6261

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Abstract

We study a principal‐agent model wherein the agent is better informed of the prospects of the project, and the project requires both an observable and unobservable input. We characterize the optimal contracts, and explore the trade‐offs between high‐ and low‐powered incentive schemes. We discuss the implications for push and pull programs used to encourage Research and Development (R&D) activity, but our results are relevant in other contexts.

Item Type:

Journal Article

Journal or Publication Title:

RAND Journal of Economics

Additional Information:

This is the peer reviewed version of the following article:Rietzke, D. and Chen, Y. (2020), Push or pull? Performance‐pay, incentives, and information. The RAND Journal of Economics. doi:10.1111/1756-2171.12314 which has been published in final form at https://onlinelibrary.wiley.com/doi/full/10.1111/1756-2171.12314 This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

Uncontrolled Keywords:

/dk/atira/pure/subjectarea/asjc/2000/2002

Subjects:

?? pay for performancemoral hazardadverse selectionobservable actionprincipal-agent problemeconomics and econometricsd82d86o31 ??

Departments:

Lancaster University Management School > Economics

ID Code:

136186

Deposited By:

ep_importer_pure

Deposited On:

19 Aug 2019 10:35

Refereed?:

Yes

Published?:

Published

Last Modified:

24 Aug 2024 23:45

URI:

https://eprints.lancs.ac.uk/id/eprint/136186