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Relative performance evaluation, agent hold-up and firm organization

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Relative Performance Evaluation, Agent Hold-Up and Firm Organization

Kvaløy, Ola; Olsen, Trond E. - 2007

We analyze a situation where common noise makes compensation based on relative performance evaluation (RPE) desirable, but where the agents' ability to hold-up values ex post obstruct the implementation of optimal RPE schemes. The principal can take actions to constrain the agents' hold-up power...

Persistent link: https://www.econbiz.de/10014222001