We analyze in an incomplete contracts model whether a supplier should be integrated if in addition to his investment level he may choose the intensity of specialization towards the needs of the buyer. A basic trade-off arises: While non-integration may lead to higher investment incentives,...

We empirically investigate possible distortions in subjective performance evaluations. A key hypothesis is that evaluations are more upward biased the closer the social ties between supervisor and appraised employee. We test this hypothesis with a company data set from a call center organization...