EconPapers    
Economics at your fingertips  
 

Payoff Implications of Incentive Contracting

Daniel Garrett

No 14725, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: In the context of a canonical agency model, we study the payoff implications of introducing optimally structured incentives. We do so from the perspective of an analyst who does not know the agent's preferences for responding to incentives, but does know that the principal knows them. We provide, in particular, tight bounds on the principal's expected benefit from optimal incentive contracting across feasible values of the agent's expected rents. We thus show how economically relevant predictions can be made robustly given ignorance of a key primitive.

Keywords: Mechanism design; Robustness; Procurement (search for similar items in EconPapers)
JEL-codes: D82 (search for similar items in EconPapers)
Date: 2020-05
New Economics Papers: this item is included in nep-cta, nep-des, nep-hrm and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://cepr.org/publications/DP14725 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Payoff Implications of Incentive Contracting (2020) Downloads
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:cpr:ceprdp:14725

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP14725

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2023-07-05
Handle: RePEc:cpr:ceprdp:14725