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Another Look at Job Design with Conflicting Tasks

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  • Jiancai Pi

Abstract

This paper provides another look at job design with conflicting tasks. In a two‐stage moral hazard framework with risk‐neutral agents and limited liability, we study externalities that the first‐stage outcome has on the second‐stage success probability. We focus on outcome externalities with regard to the fixed (i.e. effort independent) part of the second‐stage success probability. Our results differ from the case studied by Schmitz (), who considers outcome externalities with regard to the marginal second‐stage success probability.

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  • Jiancai Pi, 2018. "Another Look at Job Design with Conflicting Tasks," Australian Economic Papers, Wiley Blackwell, vol. 57(4), pages 427-434, December.
    • Handle: RePEc:bla:ausecp:v:57:y:2018:i:4:p:427-434
    DOI: 10.1111/1467-8454.12117
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    References listed on IDEAS

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    1. Hoppe, Eva I. & Kusterer, David J. & Schmitz, Patrick W., 2013. "Public–private partnerships versus traditional procurement: An experimental investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 145-166.
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    10. Patrick W. Schmitz, 2005. "Allocating Control in Agency Problems with Limited Liability and Sequential Hidden Actions," RAND Journal of Economics, The RAND Corporation, vol. 36(2), pages 318-336, Summer.
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    Cited by:

    1. Schmitz, Patrick W., 2019. "Incomplete contracts, limited liability, and the optimality of joint ownership," Economics Letters, Elsevier, vol. 183(C), pages 1-1.
    2. Müller, Daniel & Schmitz, Patrick W., 2021. "The right to quit work: An efficiency rationale for restricting the freedom of contract," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 653-669.
    3. Schmitz, Patrick W., 2020. "Moral hazard and the property rights approach to the theory of the firm," Economics Letters, Elsevier, vol. 186(C).
    4. Jiancai Pi, 2021. "An investigation of seeming favoritism in public procurement," Manchester School, University of Manchester, vol. 89(1), pages 128-137, January.
    5. Eva I. Hoppe & Patrick W. Schmitz, 2021. "How (Not) to Foster Innovations in Public Infrastructure Projects," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(1), pages 238-266, January.

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