Discretion and Incentives in Organizations Olsen, Trond E; Torsvik, Gaute

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Olsen, Trond E ; Torsvik, Gaute
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Journal of Labor Economics
Employee incentives -- Analysis; Human resource management -- Research; Employee motivation -- Analysis
Academic; Trade
We analyze the link between workers' discretion and incentives in an organization that lasts for several periods. In a long-lasting affiliation, it is possible for the principal to learn and update her beliefs about essential characteristics associated with either the job or the agent. This learning possibility has an important effect on the link between workers' discretion and incentives.
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