Motivational Ratings

Speaker
Johannes Horner
Date
30/04/2018 - 12:30 - 11:10Add To Calendar 2018-04-30 11:10:00 2018-04-30 12:30:00 Motivational Ratings Performance evaluation (“rating”) systems not only provide information to users but also motivate the rated worker. This paper solves for the optimal (effort-maximizing) rating within the standard career concerns framework. We prove that this rating is a linear function of past observations. The rating, however, is not a Markov process, but rather the sum of two Markov processes. We show how it combines information of different types and vintages. An increase in effort may adversely affect some (but not all) future ratings. Joint with Nicolas S. Lambert. Building 504 (Economics), Seminar room 011 אוניברסיטת בר-אילן - Department of Economics Economics.Dept@mail.biu.ac.il Asia/Jerusalem public
Place
Building 504 (Economics), Seminar room 011
Affiliation
Yale
Abstract

Performance evaluation (“rating”) systems not only provide information to users but also motivate the rated worker. This paper solves for the optimal (effort-maximizing) rating within the standard career concerns framework. We prove that this rating is a linear function of past observations. The rating, however, is not a Markov process, but rather the sum of two Markov processes. We show how it combines information of different types and vintages. An increase in effort may adversely affect some (but not all) future ratings.

Joint with Nicolas S. Lambert.

Last Updated Date : 25/04/2018