The 'Ratchet Principle' and Performance Incentives

M. Weitzman
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引用次数: 420

Abstract

The use of current performance as a partial basis for setting future targets is an almost universal feature of economic planning. This "ratchet principle," as it is sometimes called, creates a dynamic incentive problem for the enterprise. Higher rewards from better current performance must be weighed against the future assignment of more ambitious targets. In this paper I formulate the problem of the enterprise as a multiperiod stochastic optimization model incorporating an explicit feedback mechanism for target setting. I show that an optimal solution is easily characterized, and that the incentive effects of the ratchet principle can be fully analyzed in simple economic terms.
“棘轮原则”与绩效激励
利用目前的业绩作为制定未来目标的部分基础,几乎是经济规划的普遍特点。这种有时被称为“棘轮原理”的原理,给企业带来了一个动态激励问题。当前更好的表现所带来的更高奖励,必须与未来分配的更雄心勃勃的目标进行权衡。在本文中,我将企业问题表述为一个包含明确的目标设定反馈机制的多周期随机优化模型。我证明了最优解很容易表征,并且棘轮原理的激励效应可以用简单的经济学术语进行充分分析。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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