David Lagziel
Performance Cycles
Lagziel, David; Lehrer, Ehud
Abstract
A decision maker repeatedly exerts efforts to produce new outputs, while being compensated based on his past and current production levels. We show that the decision maker’s optimal strategy dictates a cyclic oscillatory performance whenever the compensation depends on recent past performance. We apply our model to various economic settings such as the delegated portfolio-managers problem, an R&D investment problem, and a dynamic advertising problem.
Citation
Lagziel, D., & Lehrer, E. (2023). Performance Cycles. Economic Theory, https://doi.org/10.1007/s00199-023-01516-x
Journal Article Type | Article |
---|---|
Acceptance Date | Jul 24, 2023 |
Online Publication Date | Aug 25, 2023 |
Publication Date | 2023 |
Deposit Date | Aug 15, 2023 |
Publicly Available Date | Aug 26, 2024 |
Journal | Economic Theory |
Print ISSN | 0938-2259 |
Electronic ISSN | 1432-0479 |
Publisher | Springer |
Peer Reviewed | Peer Reviewed |
DOI | https://doi.org/10.1007/s00199-023-01516-x |
Public URL | https://durham-repository.worktribe.com/output/1718295 |
Publisher URL | https://www.springer.com/journal/199 |
Files
This file is under embargo until Aug 26, 2024 due to copyright restrictions.
You might also like
The Value of Information in Stopping Problems
(2023)
Journal Article
Monologues, dialogues, and common priors
(2022)
Journal Article
Screening Dominance: A Comparison of Noisy Signals
(2022)
Journal Article
Repeated Games with Incomplete Information over Predictable Systems
(2022)
Journal Article
Subjective utilitarianism: Individual decisions in a social context
(2020)
Journal Article
Downloadable Citations
About Durham Research Online (DRO)
Administrator e-mail: dro.admin@durham.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search