IDEAS home Printed from https://ideas.repec.org/a/rje/randje/v33y2002iwinterp723-739.html
   My bibliography  Save this article

Contracting, Gatekeepers, and Unverifiable Performance

Author

Listed:
  • James A. Dearden
  • Dorothy E. Klotz

Abstract

A group of diverse principals who represent an institution contract with an agent for the production of a two-dimensional commodity. One dimension of the agent's production is verifiable, while the other is unverifiable. The principals can employ two strategic tools to motivate the agent---a minimum requirement on the verifiable dimension and a tough gatekeeper. A gatekeeper is a principal who is elected and granted authority to determine whether the full group considers the agent's production. A tough gatekeeper can be used to motivate production in the unverifiable dimension. We characterize conditions for which the principals use these two strategic tools, and we examine the economic consequences of partial verifiability.

Suggested Citation

  • James A. Dearden & Dorothy E. Klotz, 2002. "Contracting, Gatekeepers, and Unverifiable Performance," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 723-739, Winter.
    • Handle: RePEc:rje:randje:v:33:y:2002:i:winter:p:723-739
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rje:randje:v:33:y:2002:i:winter:p:723-739. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.rje.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.