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Monitoring and Motivation in Principal‐Agent Relationships: Some Issues in the Case of Local Authority Services

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  • Bruce Walker

Abstract

This paper examines a number of issues concerning the effects of monitoring on principals and agents involved in the provision of local authority services subject to competition. It examines, and then extends, existing theoretical work indicating the potential for sub‐optimal outcomes which result from the principal introducing monitoring schemes which focus upon the measurable aspects of the agent’s performance. The paper then departs from the received principal‐agent paradigm in order to consider whether monitoring and competitive regimes more generally have negative effects on the welfare and performance of principals and agents in both theory and practice.

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  • Bruce Walker, 2000. "Monitoring and Motivation in Principal‐Agent Relationships: Some Issues in the Case of Local Authority Services," Scottish Journal of Political Economy, Scottish Economic Society, vol. 47(5), pages 525-549, November.
    • Handle: RePEc:bla:scotjp:v:47:y:2000:i:5:p:525-549
    DOI: 10.1111/1467-9485.00177
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    Cited by:

    1. Sandro Casal & Antonio Filippin, 2024. "The effect of observing multiple private information outcomes on the inclination to cheat," Economic Inquiry, Western Economic Association International, vol. 62(2), pages 543-562, April.
    2. Mu, Rui & Jong, Martin de & Koppenjan, Joop, 2011. "The rise and fall of Public–Private Partnerships in China: a path-dependent approach," Journal of Transport Geography, Elsevier, vol. 19(4), pages 794-806.

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