Optimal Information Asymmetry and Team Performance Measurement

  title={Optimal Information Asymmetry and Team Performance Measurement},
  author={Naomi R. Rothenberg},
This paper studies the effect of agents’ access to pre-decision information, depending on whether only group performance is rewarded or individual performance is rewarded. Pre-decision information only affects agents’ incentives, which in turn depend on the type of performance evaluation system. With public information and group performance measures, the principal prefers a perfect signal if the high productivity state is more informative, and otherwise prefers no information. With group… CONTINUE READING