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Job design and the benefits of private trade

Abstract:
We reconsider the job design theory of Holmstrom and Milgrom (1991), to include career concerns considerations. When reputations are considered, discretion may play a more integral part of the incentive scheme. It can be a useful instrument to enhance incentives and prevent the adverse selection of low ability agents. We then show that these synergies are useful in explaining the employment of U.S. faculty members and the employment of agents in the English East India Company, an historically important firm.
Publication status:
Published

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Publisher:
University of Oxford
Series:
Department of Economics Discussion Paper Series
Publication date:
2004-09-01
Paper number:
204


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Pubs id:
1144231
Local pid:
pubs:1144231
Deposit date:
2020-12-15
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