Business & Economics Books:

The Value of Signals in Hidden Action Models

Concepts, Application, and Empirical Evidence
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Paperback / softback
$148.00
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Description

What happens if A wants to buy a good or service from B, but not all relevant characteristics can be fixed in a contract? This book gives a non-technical overview of various models dealing with this situation. Particular emphasis is put on the problem that the service includes various tasks and B is paid by a performance measure (signal). As a result, B might choose the wrong allocation of effort between tasks. Of course, the wrong allocation entails costs. A method to calculate these costs is suggested and it is explored how and when these costs occur. Some performance measures seem to be less prone to misallocation such as measures of firm performance. Consequently, one expects more use of firm performance measures when misallocation can be a problem. This hypothesis is examined empirically.
Release date NZ
February 9th, 2004
Audience
  • Professional & Vocational
Edition
Softcover reprint of the original 1st ed. 2004
Illustrations
VIII, 162 p.
Pages
162
Dimensions
156x234x9
ISBN-13
9783790801736
Product ID
2826766

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