We use a simple career concerns model with two tasks and additive technology to shed some light on agent’s incentives for effort repartition. We establish the conditions under which the agent concentrates his effort on one of the tasks and discuss the implications of the in-formational structure on his choice. In particular, it is shown that increasing information precision may distort incentives and harms the principal’s interest.
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Paper provided by LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1 in its series Cahiers du LASER (LASER Working Papers) with number
2004.10.
Length: 8 pages Date of creation: 2004 Date of revision: Handle: RePEc:mop:lasrwp:2004.10
Contact details of provider: Postal: Université de Montpellier 1, Faculté des Sciences Economiques, LASER, Av. de la Mer - Espace Richter, CS 79606, 34960 Montpellier Cedex 2, France Web page: http://www.laser.univ-montp1.fr More information through EDIRC
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