Uncertainty, pay for performance, and asymmetric information

Journal of Law, Economics, and Organization

Volumn 25, Issue 2, 2009, Pages 400-441

  Balmaceda, Felipe ^a  

^a UNIVERSITY OF CHILE   (Chile)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 71949109812     PISSN: 87566222     EISSN: 14657341     Source Type: Journal    
DOI: 10.1093/jleo/ewn022     Document Type: Article

References (36)

1. Arya, A., and B. Mittendorf. 2005. "Offering Stock Options to Gauge Managerial Talent," 40 Journal of Accounting and Economics 189-210.
2. Brown, C. 1990. "Firms' Choice of Method of Pay," 43 Industrial and Labor Relations Review 165S-182S.
3. ---. 1992. "Wage Levels and the Method of Pay," 23 Rand Journal of Economics 367-75.
4. Cadenillas, A., Cvitanic, J., and Zapatero, F. 2005. "Stock Options with Unknown Executive Type," Working Paper.
5. Cho, I., and Kreps, D. 1987. "Signaling Games and Stable Equilibria," 102 Quarterly Journal of Economics 179-222.
6. Foster, A. D., and Rosenweig, M. R. 1996. "Comparative Advantage, Information and the Allocation of Workers to Tasks: Evidence from an Agricultural Labor Market," 63 Review of Economic Studies 347-374
7. Gollier, C. 1995. "The Comparative Statics of Change in Risk Revisited," 66 Journal of Economic Theory 522-36.
8. ---. 2001. The Economics of Risk and Time. Cambridge, MA: MIT Press.
9. Gollier, C., and Kimball, M. S. 1996. "Towards a Systematic Approach to the Economics of Uncertainty: Characterizing Utility Functions." Discussion Paper, University of Michigan.
10. Grossman, H. 1979. "Adverse Selection, Dissembling, and Competitive Equilibrium," 10 Bell Journal of Economics 336-43.
11. Grossman S., and Hart, O. 1983. "An Analysis of the Principal-Agent Problem," 51 Econometrica 7-45.
12. Hellwig, M. 1987. "Some Recent Developments in the Theory of Competition in Markets with Adverse Selection," 31 European Economic Review S319-25.
13. Holmstrom, B., and Milgrom, P. 1987. "Aggregation and Linearity in the Provision of Intertemporal Incentives," 55 Econometrica 303-328
14. Jensen, M. C., and Murphy, K. J. 1990. "Performance Pay and Top Management Incentives," 98 Journal of Political Economy 225-65.
15. Kaplan, S. 1994. "Top Executive Rewards and Firm Performance: A Comparison of Japan and United States," 102 Journal of Political Economy 510-46.
16. Kimball, M. S. 1990. "Precautory Savings in the Small and the Large," 58 Econometrica 911-920
17. Lafontaine, F. 1992. "Agency Theory and Franchising: Some Empirical Results," 23 Rand Journal of Economics 263-83.
18. Lafontaine, F., and Slade, M. 2001. "Incentive Contracting and the Franchise Decision," in K. Chatterjee and W. Samuelson, eds., Advances in Business Applications of Game Theory. Boston, MA: Kluwer Academic Press.
19. Lazear, E. P. 1986. "Salaries and Piece-rates," 59 Journal of Business 405-31.
20. ---. 2000a. "Performance Pay and Productivity," 90 American Economic Review 1346-1361
21. ---. 2000b. "The Power of Incentives," 90 American Economic Review, Papers and Proceedings 410-414
22. ---. 2005. "Output-Based Pay: Incentives or Sorting?" 23 Research in Labor Economics 1-25.
23. Mailath, J. M, Okuno-Fujiwarwa, M., and Postlewaite, A. 1993. "Belief-Based Refinements in Signaling Games," 60 Journal of Economic Theory 241-76.
24. Matutes, C., Regibeau, P., and Rockett, K. 1994. "Compensation Schemes and Labor Market Competition: Piece Rates versus Wage Rate," 3 Journal of Economics and Management Strategy 325-53.
25. Mirrlees, J. 1999. "The Theory of Moral Hazard and Unobservable Behavior: Part I," 66 Review of Economic Studies 23-38.
26. Moen, E., and Rosén, A. 2005. "Performance Pay and Adverse Selection," 107 Scandinavian Journal of Economics 279-98.
27. Murphy, K. 1999. "Executive Compensation," in Orley Ashenfelter and David Card, eds., Handbook of Labor Economics, Chap. 38, 2485-2563. Vol.3b. North Holland, Amsterdam: Elsevier Science.
28. Oyer, P. 2004. "Why Do Firms Use Incentives That Have No Incentive Effects," 59 Journal of Finance 1619-50.
29. Paarsh, H., and Shearer, B. S. 2000. "Piece Rates, Fixed Wages, and Incentive Effects: Statistical Evidence from Payroll Records," 40 International Economic Review 59-92.
30. Petersen, T. 1991. "Reward Systems and the Distribution of Wages,"7 Journal of Law, Economics and Organization 131-157
31. ---. 1992. "Payment Systems and the Structure of Inequality: Conceptual Issues and a Analysis of Salespersons in Department Stores," 98 American Journal of Sociology 76-104.
32. Prendergast, C. 1999. "The Provision of Incentives in Firms," 37 Journal of Economic Literature 7-63.
33. ---. 2002a. "Uncertainty and Incentives," 20 Journal of Labor Economics 115-37.
34. ---. 2002b. "The Tenuous Trade-off between Risk and Incentives," 110 Journal of Political Economy 1071-102.
35. Rothschild, M., and Stiglitz, J. 1976. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information," Quarterly Journal of Economics, 629-649
36. Shearer, B. 2004. "Piece Rates, Fixed Wages and Incentives, Evidence from a Field Experiment," 71 Review of Economic Studies 513-534