Subjective performance evaluations and reciprocity in principal-agent relations
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Subjective performance evaluations and reciprocity in principal-agent relations. / Sebald, Alexander Christopher; Walzl, Markus.
I: Scandinavian Journal of Economics, Bind 116, Nr. 2, 2014, s. 570-590.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Subjective performance evaluations and reciprocity in principal-agent relations
AU - Sebald, Alexander Christopher
AU - Walzl, Markus
N1 - JEL Classification: D01;D825;D86;J41
PY - 2014
Y1 - 2014
N2 - We conduct a laboratory experiment with agents working on, and principals benefiting from, a real effort task in which the agents' performance can only be evaluated subjectively. Principals give subjective performance feedback to agents, and agents have an opportunity to sanction principals. In contrast to existing models of reciprocity, we find that agents tend to sanction whenever the feedback of principals is below their subjective self-evaluations even if agents' pay-offs are independent of it. In turn, principals provide more positive feedback (relative to their actual performance assessment of the agent) if this does not affect their pay-off.
AB - We conduct a laboratory experiment with agents working on, and principals benefiting from, a real effort task in which the agents' performance can only be evaluated subjectively. Principals give subjective performance feedback to agents, and agents have an opportunity to sanction principals. In contrast to existing models of reciprocity, we find that agents tend to sanction whenever the feedback of principals is below their subjective self-evaluations even if agents' pay-offs are independent of it. In turn, principals provide more positive feedback (relative to their actual performance assessment of the agent) if this does not affect their pay-off.
KW - Faculty of Social Sciences
KW - contracts
KW - reciprocity
KW - subjective performance evaluations
U2 - 10.1111/sjoe.12045
DO - 10.1111/sjoe.12045
M3 - Journal article
VL - 116
SP - 570
EP - 590
JO - Scandinavian Journal of Economics
JF - Scandinavian Journal of Economics
SN - 0347-0520
IS - 2
ER -
ID: 103534787