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Subjective Performance Appraisal and Inequality Aversion

Listed author(s):
  • Christian Grund

    ()

    (Department of Business and Economics - University of Wuerzburg)

  • Judith Przemeck

    ()

    (Department of Economics - Bonn Universität - University of Bonn)

Making use of a subjective performance appraisal system, it is a well established fact that many supervisors tend to assess the employees too good (leniency bias) and that the appraisals hardly vary across employees of a certain supervisor (centrality bias). We explain these two biases in a simple theoretical model and discuss determinants of the size of the biases.

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File URL: https://hal.archives-ouvertes.fr/hal-00687808/document
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Paper provided by HAL in its series Post-Print with number hal-00687808.

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Date of creation: 15 Apr 2011
Publication status: Published in Applied Economics, Taylor & Francis (Routledge), 2011, pp.1. <10.1080/00036846.2011.560109>
Handle: RePEc:hal:journl:hal-00687808
DOI: 10.1080/00036846.2011.560109
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00687808
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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  1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 817-868.
  2. Giebe, Thomas & Gürtler, Oliver, 2012. "Optimal contracts for lenient supervisors," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 403-420.
  3. Grund, Christian & Przemeck, Judith, 2008. "Subjective Performance Evaluation and Inequality Aversion," IZA Discussion Papers 3382, Institute for the Study of Labor (IZA).
  4. Holmstrom, Bengt & Milgrom, Paul, 1991. "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design," Journal of Law, Economics and Organization, Oxford University Press, vol. 7(0), pages 24-52, Special I.
  5. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
  6. Prendergast, Canice & Topel, Robert H, 1996. "Favoritism in Organizations," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 958-978, October.
  7. Agell, Jonas & Lundborg, Per, 1995. " Theories of Pay and Unemployment: Survey Evidence from Swedish Manufacturing Firms," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(2), pages 295-307, June.
  8. Breuer, Kathrin & Nieken, Petra & Sliwka, Dirk, 2010. "Social Ties and Subjective Performance Evaluations: An Empirical Investigation," IZA Discussion Papers 4913, Institute for the Study of Labor (IZA).
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