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The Dean And The Chair.pdf

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Preview of The Dean and The Chair
🔗 Source: conference.nber.org
📊 Size: 392 KB
📄 Pages: 44 pages
⬇️ Downloads: 113

Summary

A principal needs a biased agent's expertise to assess job applicants, but wants to mitigate the agent's bias. The optimal mechanism rewards the agent for hiring applicants with an increase in value and punishes for not hiring with a decrease in value, moving the agent's reservation quality towards the principal's preferred quality. The mechanism delivers punishments and rewards as changes in probability of the principal taking over hiring decisions, and once taken over, the principal hires every applicant. The agent's value converges towards a limit if they keep hiring, but falls below a threshold if they don't, facing the threat of the principal taking control.

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Description

A principal needs a biased agent's expertise to assess job applicants, but wants to mitigate the agent's bias.

Technical Information

  • File Format: PDF
  • File Size: 392 KB
  • Pages: 44
  • Language: EN
  • Total Downloads: 113
  • Last Updated: 1 week ago

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