Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93744
Authors: 
Budde, Jörg
Year of Publication: 
2006
Series/Report no.: 
SFB/TR 15 Discussion Paper 203
Abstract: 
This paper analyzes the use of alternative performance measures in an agency model in which contracting incorporates both formal and informal agreements. It is shown that under a proper use of verifiable and unverifiable performance measures, the two types of contracts are complements, regardless of the principal's fallback position. The analysis therefore contrasts earlier results of the literature, and provides a rationale for the application of subjective performance information, as it is frequently incorporated in strategic performance measurement systems.
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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