Dynamic Evaluation Design
Dynamic Evaluation Design
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动态评估设计
DOI:
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发表时间:
2017
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影响因子:
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通讯作者:
Alex Smolin
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文献类型:
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作者:
Alex Smolin
A principal owns a firm, hires an agent of uncertain productivity, and designs a dynamic policy for evaluating his performance. The agent observes ongoing evaluations and decides when to quit. When not quitting, the agent is paid a wage that is linear in his expected productivity; the principal claims the residual performance. After quitting, the players secure fixed outside options. I show that equilibrium is Pareto efficient. For a broad class of performance technologies, the equilibrium wage deterministically grows with tenure. My analysis suggests that endogenous performance evaluation plays an important role in shaping careers in organizations. (JEL D21, D82, D83, J24, J31, J41, M51)