ABSTRACT: Performance evaluation with multiple tasks and multiple measures has been explored in a variety of settings. Yet, the efficient design of a portfolio of performance measures remains opaque, largely because of the multidimensional nature of the exercise. Here we focus on the value of adding measures to an existing portfolio of measures in a multi-task LEN style agency model. We offer an algebraic decomposition that projects the gain from a set of additional performance measures into “distance” and “risk” components. The distance component comports with task balance and intensity issues and the risk component with the inevitable risk sharing or compensating wage differential issue.
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