Subjective Performance Evaluations, Self-esteem, and Ego-threats in Principal-agent Relations
Publikation: Working paper › Forskning
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Subjective Performance Evaluations, Self-esteem, and Ego-threats in Principal-agent Relations. / Sebald, Alexander Christopher; Walzl, Markus.
Department of Economics, University of Copenhagen, 2010.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Subjective Performance Evaluations, Self-esteem, and Ego-threats in Principal-agent Relations
AU - Sebald, Alexander Christopher
AU - Walzl, Markus
N1 - JEL classifications: D01, D02, D82, D86, J41
PY - 2010
Y1 - 2010
N2 - We conduct a laboratory experiment with agents working on and principals benefiting from a real effort task in which the agents' effort/performance can only be evaluated subjectively. Principals give subjective performance feedback to agents and agents have an opportunity to sanction principals. We find that agents sanction whenever the feedback of principals is below their subjective self-evaluations even if the agents' payoff is independent of the principals' feedback. Based on our experimental analysis we propose a principal-agent model with subjective performance evaluations that accommodates this finding. We analyze the agents' (optimal) behavior, optimal contracts, and social welfare in this environment.
AB - We conduct a laboratory experiment with agents working on and principals benefiting from a real effort task in which the agents' effort/performance can only be evaluated subjectively. Principals give subjective performance feedback to agents and agents have an opportunity to sanction principals. We find that agents sanction whenever the feedback of principals is below their subjective self-evaluations even if the agents' payoff is independent of the principals' feedback. Based on our experimental analysis we propose a principal-agent model with subjective performance evaluations that accommodates this finding. We analyze the agents' (optimal) behavior, optimal contracts, and social welfare in this environment.
KW - Faculty of Social Sciences
KW - contracts
KW - subjective performance evaluations
KW - self-esteem
KW - ego-threats
M3 - Working paper
BT - Subjective Performance Evaluations, Self-esteem, and Ego-threats in Principal-agent Relations
PB - Department of Economics, University of Copenhagen
ER -
ID: 21545785