Intertemporal Aggration.pdf.pdf' (57.2 kB)
journal contributionposted on 1992-11-01, 00:00 authored by Anil Arya, Jonathan Glover, Jinghong LiangJinghong Liang
Intertemporal aggregation results in a summarization of information and a natural delay in the release of information. We study a principal-agent model and show that intertemporal aggregation can be an optimal feature of a performance evaluation system. We then highlight subtleties associated with valuing additional information as the level of aggregation of existing information is varied.