Coordination and Incentive Contracts in Project Management under Asymmetric Information

Abstract

We study the problem of the manager of a project consisting of two sub-projects or tasks which are outsourced to different subcontractors. The project manager earns more revenue from the project if it is completed faster, but he cannot observe how hard subcontractors work, only the stochastic duration of their tasks. We derive the optimal linear incentive… (More)

Topics

8 Figures and Tables

Slides referencing similar topics