Mutual Monitoring vs. Incentive Pay in Teams
Radoslawa Nikolowa ()
Annals of Economics and Statistics, 2009, issue 93-94, 135-160
Agents who work in teams may be better informed about each other's effort than the employer. We analyse how the possibility for employees to write contracts on this information alters the incentives provided by the principal. We show that side-contracting is profitable for the employer when agents are well informed and hardly constrained by a limited liability. Furthermore, we show that mutual monitoring dominates unilateral supervision for high values of the monitoring cost.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2009:i:93-94:p:135-160
Access Statistics for this article
Annals of Economics and Statistics is currently edited by Laurent Linnemer
More articles in Annals of Economics and Statistics from GENES Contact information at EDIRC.
Bibliographic data for series maintained by Secretariat General () and Laurent Linnemer ().