AEAweb: Journal Article Full-Text Access
Note to Institutional Subscribers: If you normally access AEAweb journal content via your university or firm's subscription and receive this page, please click
here. The most likely causes of this are a recently changed IP address, a new subscription, or the renewal of a lapsed institutional subscription. This page will stop appearing on the next synchronisation of the document delivery and authentication systems.
You may also click here for pay-per-view, Athens login and other access options .
AEA Members, please click the button below to access the login form:
Maestri, Lucas. 2012. "Bonus Payments versus Efficiency Wages in the Repeated Principal-Agent Model with Subjective Evaluations."
,
4(3): 34-56.
Show Article Details
DOI: 10.1257/mic.4.3.34
Abstract:We study an infinitely repeated principal-agent model with subjective
evaluations. We compare the surplus in efficiency-wage equilibria and in bonus-payments equilibria. The agent receives a constant wage and is motivated by the threat of dismissal in efficiency-wage
equilibria. The agent receives a bonus and quits the relationship after disagreements between his self-evaluation and the principal's
performance appraisal in bonus-payments equilibria. We construct a class of equilibria with bonus payments that approach efficiency as patience increases. In contrast, payoffs from efficiency-wage equilibria are bounded away from the Pareto-payoff frontier for any discount factor. (JEL D82, J33, J41)
Authors:
Maestri, Lucas (Toulouse School of Economics)
JEL Classifications:
D82: Asymmetric and Private Information
J33: Compensation Packages; Payment Methods
J41: Labor Contracts
If you are an AEA member and do not have an AEAweb login, please
click here.
If you would like to become an AEA member, please see our
membership page.
If you arrived at this page via a journal article link, you will be redirected to the pdf after successful login.
If your first login attempt fails, and you have recently signed up for access or have recently changed your password, you may need to wait a few moments and try again.
Please contact us at
notify@aeaweb.org with any problems or questions.
Contents of Current Issues
June 2013 AER
Spring 2013 JEP
May 2013 AEJ: Policy
May 2013 AEJ: Micro
April 2013 AEJ: Macro
April 2013 AEJ: Applied
March 2013 JEL
Virtual Field Journals
In the News:
An article in the Journal of Economic Perspectives entitled, "The Growth of Finance" by Harvard Business School professors, Robin Greenwood and David Scharfstein, was recently explored by the New York Times and the Wall Street Journal.
U.S. News & World Report cites Princeton-based Burton Malkiel's article in the Journal of Economic Perspectives as a preferred source of "sound financial advice" for investors.
The Huffington Post reports on a study addressing the influence of lifestyle factors on shrinking height in the elderly published in the April issue of AEJ: Applied Economics.
AEA in News Archive
Contact Us
