IDEAS home Printed from https://ideas.repec.org/a/spr/reaccs/v3y1998i3d10.1023_a1009625322822.html
   My bibliography  Save this article

Optimal Cost Targets and Incentives for Acquiring Expertise

Author

Listed:
  • Stanley Baiman

    (University of Pennsylvania)

  • Madhav V. Rajan

    (University of Pennsylvania)

Abstract

This paper studies the optimal choice of cost standards (or cost targets) over time in an agency setting in which a worker is responsible for both implementing actions and acquiring skill/expertise that would enable him to improve his future performance with respect to those actions. We characterize the effect of the decision horizon and the observability of the worker's acquired expertise on both the optimal path of cost standards and the worker's investments in expertise. In addition, we characterize the trade-off between motivating the worker's investment in expertise and motivating his efficient use of the expertise.

Suggested Citation

  • Stanley Baiman & Madhav V. Rajan, 1998. "Optimal Cost Targets and Incentives for Acquiring Expertise," Review of Accounting Studies, Springer, vol. 3(3), pages 231-259, September.
    • Handle: RePEc:spr:reaccs:v:3:y:1998:i:3:d:10.1023_a:1009625322822
    DOI: 10.1023/A:1009625322822
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1023/A:1009625322822
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1023/A:1009625322822?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:spr:reaccs:v:3:y:1998:i:3:d:10.1023_a:1009625322822. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.