I examine an agency model where the principal has either a legitimate or an illegitimate motive for revising the incentive contract, whereas the agent does not observe the principal's motive and creates more organizational frictions as he becomes more suspicious that the principal is...

Recent advances in IT and data science give firms more flexibility to process, store and communicate the growing volume and variety of performance data at a reduced and yet significant cost. In this paper, we study the impact of this cost and flexibility on employee monitoring and the internal...

Recent technology advances have enabled firms to flexibly process and analyze sophisticated employee performance data at a reduced and yet significant cost. We develop a theory of optimal incentive contracting where the monitoring technology that governs the above procedure is part of the...