Abstract
We analyze incentive problems in team and partnership structures where the only available information to condition a contract on is a partial and noisy ranking which specifies who comes first in efforts among the competing partners. This enables us to ensure both first-best efficient effort levels for all partners and the redistribution of output only among partners. Our efficiency result is obtained for a wide range of cost and production functions.
| Original language | English |
|---|---|
| Pages (from-to) | 103-119 |
| Number of pages | 17 |
| Journal | RAND Journal of Economics |
| Volume | 40 |
| Issue number | 1 |
| DOIs | |
| State | Published - 2009 |
| Externally published | Yes |