Incentives, Risk, and Information: Notes Towards a Theory of Hierarchy

摘要: This paper analyzes the role of incentives, risk, and information in determining structure employment contracts. In particular, we focus on functions performed by piece rate versus time payment systems supervisors. The relative reliance rates is related to risk sharing, use system as a method screening employees, differential concerning difficulties tasks being performed. choice thus depends attitudes toward workers employers, effort supply elasticities, sources magnitude uncertainties, nature supervision used relation. supervisor viewed monitoring inputs (enforcing contracts), individuals, obtaining about state world, etc. Their roles are nonconvexities associated with information.