Showing off in subjective performance evaluation

This paper analyzes a mathematical model to examine a situation where an agent can show off his efforts to the principal for a higher evaluation under a one-period employment contract based on subjective performance evaluation. The analysis results indicated that the agent could achieve an efficient contract even under the one-period subjective performance evaluation by showing off. We also showed that the cost of showing off and comparing the range of increase in the probability of high evaluation according to the level of effort are essential variables in deciding to show off