Springer celebrates 175 years of publishing excellence! Join us >>

Contributions to Economics

The Value of Signals in Hidden Action Models

Concepts, Application, and Empirical Evidence

Authors: Schnedler, Wendelin

Buy this book

eBook £45.99
price for United Kingdom (gross)
  • ISBN 978-3-7908-2706-4
  • Digitally watermarked, DRM-free
  • Included format: PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover £57.99
price for United Kingdom (gross)
  • ISBN 978-3-7908-0173-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
About this book

What happens if A wants to buy a good or service from B, but not all relevant characteristics can be fixed in a contract? This book gives a non-technical overview of various models dealing with this situation. Particular emphasis is put on the problem that the service includes various tasks and B is paid by a performance measure (signal). As a result, B might choose the wrong allocation of effort between tasks. Of course, the wrong allocation entails costs. A method to calculate these costs is suggested and it is explored how and when these costs occur. Some performance measures seem to be less prone to misallocation such as measures of firm performance. Consequently, one expects more use of firm performance measures when misallocation can be a problem. This hypothesis is examined empirically.

Table of contents (5 chapters)

Buy this book

eBook £45.99
price for United Kingdom (gross)
  • ISBN 978-3-7908-2706-4
  • Digitally watermarked, DRM-free
  • Included format: PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover £57.99
price for United Kingdom (gross)
  • ISBN 978-3-7908-0173-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
Loading...

Recommended for you

Loading...

Bibliographic Information

Bibliographic Information
Book Title
The Value of Signals in Hidden Action Models
Book Subtitle
Concepts, Application, and Empirical Evidence
Authors
Series Title
Contributions to Economics
Copyright
2004
Publisher
Physica-Verlag Heidelberg
Copyright Holder
Springer-Verlag Berlin Heidelberg
eBook ISBN
978-3-7908-2706-4
DOI
10.1007/978-3-7908-2706-4
Softcover ISBN
978-3-7908-0173-6
Series ISSN
1431-1933
Edition Number
1
Number of Pages
VIII, 162
Topics