Performance Measure Properties and Incentives
April 2, 2007
Michael Gibbs (University of Chicago), Kenneth A. Merchant (USC), Wim A. Van Der Stede (London School of Economics), and Mark E. Vargus (University of Texas) provide a comprehensive empirical analysis of incentive design, focusing on effects of performance measure properties (controllable and uncontrollable risk, distortion, and ma-nipulation).