Secret Contracts for Efficient Partnerships
By allocating di erent information to team members, secret contracts can provide better incentives to perform with an intuitive organizational design. For instance, they may help to monitor monitors, and appoint secret principals. Generally, secret contracts highlight a rich duality between detection and enforcement with linear transfers. On the one hand, disobedient deviations must be detectable to enforce a given outcome, but di erent behavior may be used to detect di erent deviations. On the other hand, disobedient deviations must be attributable, i.e., some individual can be identi ed as innocent, to provide incentives with budget balance.
|Date of creation:||06 2008|
|Date of revision:||06 2008|
|Contact details of provider:|| Postal: |
Web page: http://www.econ.umn.edu/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:min:wpaper:2008-3. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Caty Bach)
If references are entirely missing, you can add them using this form.