|
|
|
|
||||
|
||||
The Quality of Information and Incentives for EffortOmer MoavHebrew University of Jerusalem - Department of Economics; University of Warwick - Department of Economics; Centre for Economic Policy Research (CEPR) Zvika NeemanTel Aviv University - Eitan Berglas School of Economics; Boston University - Department of Economics January 2005 Hebrew University Working Paper No. 2005-01 Abstract: We study the relationship between the precision of information about the performance of an agent in a market, and the incentives this agent has for exerting effort to produce high quality. We show that this relationship is not monotonic. There exists a threshold beyond which any further improvement in the precision of information weakens the agent's incentive to produce high quality. Accordingly, both very precise and very imprecise information about the agent's performance may destroy its incentive to exert effort. A few applications of this result are discussed.
Number of Pages in PDF File: 24 Keywords: Reputation, incentives, precision of information, experience good, credence good JEL Classification: D82, L15 working papers seriesDate posted: January 20, 2005Suggested CitationContact Information
|
|
|||||||||||||||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo8 in 0.360 seconds
