Citation

Discussion Paper Details

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Title: Should a principal hire one agent or two agents to perform two sequential tasks?

Author(s): Patrick W. Schmitz

Publication Date: September 2010

Keyword(s): conflicting tasks, moral hazard and synergies

Programme Area(s): Industrial Organization

Abstract: A principal should hire one agent to perform two sequential tasks when the tasks are conflicting (i.e., a first-stage success makes second-stage effort less effective), while she should hire two different agents when the tasks are synergistic.

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Bibliographic Reference

Schmitz, P. 2010. 'Should a principal hire one agent or two agents to perform two sequential tasks?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=7976