The Performance Measurement Trap

dc.contributor.ORCID0000-0002-3157-5013 (Kuksov, D)
dc.contributor.authorKuksov, Dmitri
dc.contributor.authorVillas-Boas, J. M.
dc.contributor.utdAuthorKuksov, Dmitri
dc.date.accessioned2019-11-18T21:41:51Z
dc.date.available2019-11-18T21:41:51Z
dc.date.created2019-01-30
dc.descriptionDue to copyright restrictions full text access from Treasures at UT Dallas is restricted to current UTD affiliates (use the provided Link to Article).
dc.description.abstractThis paper investigates the effect of performance measurement on the optimal effort allocation by salespeople when firms are concerned about retention of salespeople with higher abilities. It shows that introducing a salesperson performance measurement may result in productivity, profit, and welfare losses when all market participants opti-mally respond to the expected information provided by the measurement and the (ex post) optimal retention efforts of the firm cannot be (ex ante) contractually prohibited. In other words, the dynamic inconsistency of the management problems of inducing the desired effort allocation by the salespeople and the subsequent firm objective to retain high-ability salespeople may result in performance measurement yielding an inferior outcome. ©2019 INFORMS.
dc.description.departmentNaveen Jindal School of Management
dc.identifier.bibliographicCitationKuksov, D., and J. M. Villas-Boas. 2019. "The performance measurement trap." Marketing Science 38(1): 68-87, doi: 10.1287/mksc.2018.1122
dc.identifier.issn0732-2399
dc.identifier.issue1
dc.identifier.urihttps://hdl.handle.net/10735.1/7123
dc.identifier.volume38
dc.language.isoen
dc.publisherINFORMS: Inst.for Operations Research and the Management Sciences
dc.relation.urihttps://dx.doi.org/10.1287/mksc.2018.1122
dc.rights©2019 INFORMS
dc.source.journalMarketing Science
dc.subjectForm of contract
dc.subjectGame theory
dc.subjectAgency (Law)
dc.subjectCompensation management--Sales personnel
dc.titleThe Performance Measurement Trap
dc.type.genrearticle

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