Robust performance evaluation of independent agents

Ashwin Kambhampati ()
Additional contact information
Ashwin Kambhampati: Department of Economics, United States Naval Academy

Theoretical Economics, 2024, vol. 19, issue 3

Abstract: A principal provides incentives for independent agents. The principal cannot observe the agents' actions, nor does she know the entire set of actions available to them. It is shown that an anti-informativeness principle holds: very generally, robustly optimal contracts must link the incentive pay of the agents. In symmetric and binary environments, they must exhibit joint performance evaluation — each agent's pay is increasing in the performance of the other.

Keywords: Moral hazard; robustness; teams (search for similar items in EconPapers)
JEL-codes: D81 D82 D86 (search for similar items in EconPapers)
Date: 2024-07-24
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://econtheory.org/ojs/index.php/te/article/viewFile/20241151/39757/1223 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:the:publsh:5523

Access Statistics for this article

Theoretical Economics is currently edited by Simon Board, Todd D. Sarver, Juuso Toikka, Rakesh Vohra, Pierre-Olivier Weill

More articles in Theoretical Economics from Econometric Society
Bibliographic data for series maintained by Martin J. Osborne ().