Theoretical Economics
Journal of the Econometric Society
Edited by: Federico Echenique • ISSN (e): 1555-7561 • ISSN (print): 1933-6837
Edited by: Federico Echenique • ISSN (e): 1555-7561 • ISSN (print): 1933-6837
Theoretical Economics: Jul, 2024, Volume 19, Issue 3
https://doi.org/10.3982/TE5523
p. 1151-1184
A principal provides incentives for independent agents. The principal cannot observe the agents' actions, nor does she know the entire set of actions available to them. It is shown that an anti-informativeness principle holds: very generally, robustly optimal contracts must link the incentive pay of the agents. In symmetric and binary environments, they must exhibit joint performance evaluation — each agent's pay is increasing in the performance of the other.