Information Sharing and Incentives in Organizations
AbstractWe examine optimal information flows between a manager and a worker who is in charge of evaluating a parameter of interest, e.g. the value of a project. The manager may possesses information about the parameter, and, if informed, may divulge her information to the worker. We show that information sharing may weaken the worker's incentives and that, consequently, the manager may find it optimal to conceal her information from the worker. Moreover, the manager faces a time-inconsistency problem, which leads her to conceal her information more often than she would if she could commit to an information sharing policy. We build on these results to address issues related to authority in organizations.
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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 1321.
Length: 32 pages
Date of creation: Dec 2013
Date of revision:
Information non-disclosure; expert evaluation; agency costs; authority;
Find related papers by JEL classification:
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-01-10 (All new papers)
- NEP-CTA-2014-01-10 (Contract Theory & Applications)
- NEP-HRM-2014-01-10 (Human Capital & Human Resource Management)
- NEP-MIC-2014-01-10 (Microeconomics)
- NEP-PPM-2014-01-10 (Project, Program & Portfolio Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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