We derive equilibrium asset prices when fund managers deviate from benchmark indices to exploit noise-trader induced … distortions but fund investors constrain these deviations. Because constraints force managers to buy assets that they underweight …. Noise traders bias prices upward because constraints make it harder for managers to underweight overvalued assets, which …

noise in the performance measure. In contrast, expectancy theory as developed by psychologists predicts lower effort levels …

We examine the strategic role of information transmission in a repeated principal-agent relationship where the agent … produces information that is useful to the principal. The agent values continuous employment for the principal because he makes … parties are sufficiently impatient, we show that full disclosure of the information produced occurs early in the relationship …

We examine optimal information flows between a manager and a worker who is in charge of evaluating a parameter of … interest, e.g. the value of a project. The manager may possesses information about the parameter, and, if informed, may divulge … her information to the worker. We show that information sharing may weaken the worker's incentives and that, consequently …

It is well known that comparative performance information (CPI) can enhance efficiency in static principal … ambiguous and can be characterized in terms of the underlying information structure …

workers' environments and incentive pay. The authors employ Prendergast's (2002) theory that incorporates the delegation of … standard principal-agent model and find evidence that managers cope with workplace risk by bundling incentive pay with the …