English, Article, Journal or magazine article edition: Optimal Monitoring in Teams Gautier, Axel

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/3966
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Optimal Monitoring in Teams
Author
  • Gautier, Axel
Physical Description
  • preprint
Notes
  • This paper investigates the role of output quality control in a multi agent setting with moral hazard. The principal is in charge of a team of agents who produce the output. The marketing of this output can be either a success or entail huge losses. At the time of marketing the product, the principal is uncertain about its quality and can only observe an imperfect signal of it. This creates an ex post inefficiency (a successful project may not be undertaken) and a room for monitoring output's quality. In the paper, we describe when the principal will pay for this costly monitoring and its effect on agents' incentives to exert effort. We show that there are distortions ex ante in the contract offered by the principal and ex post in the continuation decision. The monitoring can only ensure ex post efficiency. The ex ante efficiency requires effort observability.
  • Team; principal agent; monitoring
  • RePEc:ctl:louvir:1999006
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment