Item description for The Value of Signals in Hidden Action Models: Concepts, Application, and Empirical Evidence (Contributions to Economics) by Wendelin Schnedler...
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.
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Est. Packaging Dimensions: Length: 9.2" Width: 6.1" Height: 0.4" Weight: 0.45 lbs.
Release Date Mar 31, 2004
Publisher Physica-Verlag Heidelberg
ISBN 3790801739 ISBN13 9783790801736
Availability 130 units. Availability accurate as of Jan 16, 2017 10:07.
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