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Discretion and Incentives in Organizations

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Author Info
Olsen, Trond E
Torsvik, Gaute
Abstract

We analyze the link between workers' discretion and incentives in an organisation that lasts for several periods. In a long-lasting affiliation, it is possible for the principal to learn and update her beliefs about essential characteristics associated with either the job or the agent. This learning possibility has an important effect on the link between workers' discretion and incentives. Copyright 2000 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 18 (2000)
Issue (Month): 3 (July)
Pages: 377-404
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Handle: RePEc:ucp:jlabec:v:18:y:2000:i:3:p:377-404

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  1. Pablo Casas-Arce & Santhi Hejeebu, Cornell College, 2004. "Job Design and the Benefits of Private Trade," Economics Series Working Papers 204, University of Oxford, Department of Economics. [Downloadable!]
  2. Luis Garicano & Thomas N. Hubbard, 2003. "Specialization, Firms, and Markets: The Division of Labor Within and Between Law Firms," NBER Working Papers 9719, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Hvide, Hans K & Kaplan, Todd, 2003. "Delegated Job Design," CEPR Discussion Papers 3907, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  4. Hans K. Hvide & Tore Leite, 2003. "A Theory of Capital Structure with Strategic Defaults and Priority Violations," Finance 0311003, EconWPA. [Downloadable!]
    Other versions:
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