Performance Incentives with Award Constraints |
Common terms and phrases
agent's award agents perform agents receive agents supply AICC2 ASPC assume average award funds award per unit b₁ b₁(U b₂ b₂(U c(e₁ CEPR coefficient estimates contract C1 contradiction cost measures Define Discussion Papers efficient level efficient outcome excess performance fixed award pot fully funded constraints fully-funded Goswell Road group incentives heterogeneous high performer ICC₁ ICC2 implement the efficient implies incentive design problem incentive literature incentive scheme incentive system large agent larger awards Lemma level of effort limited liability constraint London Business School Macroeconomics mean budget moral hazard number of agents optimal award function optimal contract optimal incentive Panel participation constraints percent perform high performance outcomes performance standard piece rate predictions principal regressions relative budget reservation utility rewards satisfy SPChh seven performance measures small agent SPC and SBC SRID standard deviation tournament training agencies unit of budget www.cepr.org XICC2 youth cost