Dittrich, Dennis; Kocher, Martin - 2006 - This version: 26 September 2006
We present an experimental test of a shirking model where monitoring intensity is endogenous and effort a continuous … variable. Wage level, monitoring intensity and consequently the desired enforceable effort level are jointly determined by the … maximization problem of the firm. As a result, monitoring and pay should be complements. In our experiment, between and within …