全球智库信息集成服务系统(G2TT): DP2804 Are Judges Biased by Labour Market Conditions? The Selection of Firing Litigations for Trial in an Italian Firm

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP2804
	DP2804 Are Judges Biased by Labour Market Conditions? The Selection of Firing Litigations for Trial in an Italian Firm
	Andrea Ichino; Michele Polo; Enrico Rettore
发表日期	2001-05-29
出版年	2001
语种	英语
摘要	When today?s actions can affect tomorrow's value of an asset and when the principal does not have access to hard information, either about productive activity or monitoring activity, two incentive problems must be simultaneously solved: first, the ?ex-ante? moral hazard problem of inducing higher productive effort from the agent; second, the ?ex-post? problem of inducing auditing and revelation of information from the auditor. Somewhat surprisingly, the first best can be attained in the negative externality (higher effort decreases the expected future quality of the asset) case: it is enough for the principal to commit to reallocate the right to use the asset at the end of the first period. In the positive externality case (when higher effort increases the future expected quality of the asset) a change in the rights to use the asset is no longer sufficient for efficiency in the second best situation. Rather, auditing by a potential entrant becomes necessary and a mix of property rights reallocation and transfers is necessary to solve the two incentive problems. We show that the second best optimal takes the form of a generalized ?golden parachute? contract where for high outputs the agent is replaced by the third party and leaves with a fixed compensation.
主题	Industrial Organization
关键词	Monitoring Regulation Externality Golden parachutes
URL	https://cepr.org/publications/dp2804
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/531863
推荐引用方式 GB/T 7714	Andrea Ichino,Michele Polo,Enrico Rettore. DP2804 Are Judges Biased by Labour Market Conditions? The Selection of Firing Litigations for Trial in an Italian Firm. 2001.