Subjective performance evaluations and reciprocity in principal-agent relations

Alexander Sebald () and Markus Walzl

Working Papers from Faculty of Economics and Statistics, Universität Innsbruck

Abstract: We conduct a laboratory experiment with agents working on and principals benefitting from a real effort task in which the agents' performance can only be evaluated subjectively. Principals give subjective performance feedback to agents and agents have an opportunity to sanction principals. In contrast to existing models of reciprocity we find that agents tend to sanction whenever the feedback of principals is below their subjective self-evaluations even if agents' payoffs are independent of it. In turn, principals provide more positive feedback (relative to their actual performance assessment of the agent) if this does not affect their payoffs.

Keywords: Contracts; Subjective Performance Evaluations; Reciprocity (search for similar items in EconPapers)
JEL-codes: D01 D02 D82 D86 J41 (search for similar items in EconPapers)
Pages: 43
Date: 2012-08
New Economics Papers: this item is included in nep-bec, nep-cbe, nep-exp, nep-hrm and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Subjective Performance Evaluations and Reciprocity in Principal–Agent Relations (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:inn:wpaper:2012-15

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