Push or Pull? Performance-Pay, Incentives, and Information
David Rietzke, England and
Yu Chen ()
Additional contact information
David Rietzke, England: Lancaster University
Yu Chen: University of Graz, Austria
No 2018-12, Graz Economics Papers from University of Graz, Department of Economics
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 R&D activity, but our results are relevant in other contexts.
Keywords: Pay for Performance; Moral Hazard; Adverse Selection; Observable Action; Principal-Agent Problem (search for similar items in EconPapers)
JEL-codes: D82 D86 O31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cta, nep-des, nep-hrm, nep-mic and nep-ppm
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) 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:grz:wpaper:2018-12
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Graz Economics Papers from University of Graz, Department of Economics University of Graz, Universitaetsstr. 15/F4, 8010 Graz, Austria. Contact information at EDIRC.
Bibliographic data for series maintained by Michael Scholz ().