Cited by 6,046Auction Theory and ApplicationsLaw, Economics, and Judicial SystemsGame Theory and Applications

Multitask principal – agent analyses: Incentive contracts, asset ownership, and job design

Holmstrom, Bengt, Milgrom, Paul·1991·The Journal of Law, Economics, and Organization

Abstract

Bengt Holmstrom, Paul Milgrom; Multitask Principal–Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design, The Journal of Law, Economics, and

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Crossref · 10.1093/jleo/7.special_issue.24

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  • Holmström and Milgrom show that if the task where pay cannot explicitly be made contingent on performance is sufficiently important, it may even be better to provide no explicit incentives for any task.

    “Holmström and Milgrom show that if the task, where pay cannot explicitly be made contingent on performance, is sufficiently important it may even be better to provide no explicit incentives for any task.”

    From Psychological foundations of incentives (2002) · cites this paper as Holmström and Milgrom 1991

  • It is well known from practice and theory that explicit performance incentives may be harmful because they induce employees to concentrate only on rewarded tasks and neglect non-rewarded tasks.

    “It is well known from practice (Kerr 1975) and from theory (Holmström and Milgrom 1991, Baker 1992) that in this situation explicit performance incentives may be harmful because they induce the employees to concentrate only on the rewarded tasks and to neglect the non-rewarded tasks.”

    From Psychological foundations of incentives (2002) · cites this paper as Holmström and Milgrom 1991

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Authors
Holmstrom, B., & Milgrom, P.
Affiliations
  • Yale University (US)
  • Stanford University (US)
Venue
The Journal of Law, Economics, and Organization
Published
1991-01-01
Volume
7
Issue
special_issue
Pages
24-52
ISSN
  • 1465-7341 (ISSN-L)
  • 8756-6222
OpenAlex
W2149902237
Cited by
6,046
References
25
Citations by year
2026: 240 · 2025: 227 · 2024: 200 · 2023: 217 · 2022: 179 · 2021: 216 · 2020: 189 · 2019: 251 · 2018: 236 · 2017: 250 · 2016: 242 · 2015: 234 · 2014: 261 · 2013: 249 · 2012: 262
FWCI
29.12
Type
journal article
Language
en
Open access
closed
Locations
The Journal of Law Economics and Organization (publishedVersion)
Topics
  • Social Sciences › Decision Sciences › Management Science and Operations Research › Auction Theory and Applications
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Law, Economics, and Judicial Systems
  • Social Sciences › Decision Sciences › Management Science and Operations Research › Game Theory and Applications
Keywords
incentive contracts, asset ownership, job design, managerial incentives, agency theory

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