On 20 March at 12:00 there will be an ODA seminar by Nikolaj Niebuhr Lambertsen entitled:

Ranking Performance Measures when People Disagree

Abstract
Evidence suggests that people have heterogeneous beliefs, leading to disagreement, and that this is exacerbated by the complexity of performance measures. Motivated by this, we consider the ranking of performance measures in a principal-agent model in which the agent and the principal have heterogeneous beliefs. A new performance measure has value if it incrementally increases disagreement or informativeness. Ranking of performance measures depends not only on the variation in the likelihood ratio they generate but also on the variation of the disagreement ratio, which is the ratio of the agent's and the principal's belief of the density of the performance measure. Our model provides guidance on how to design performance measures to exploit heterogeneity in beliefs in any organization.

Everyone is welcome!