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Subjective performance appraisal and inequality aversion |
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| Authors: | Christian Grund Judith Przemeck |
| Affiliation: | 1. Department of Business and Economics , University of Würzburg , Sanderring 2, 97070 Würzburg, Germany ch.grund@uni-wuerzburg.de;3. Department of Economics , University of Bonn , Adenauerallee 24-42, 53113 Bonn, Germany |
| Abstract: | Making use of a subjective performance appraisal system, it is a well-established fact that many supervisors tend to assess the employees too good (leniency bias) and that the appraisals hardly vary across employees of a certain supervisor (centrality bias). We explain these two biases in a simple theoretical model and discuss determinants of the size of the biases. |
| Keywords: | appraisals inequality aversion performance evaluation centrality bias Leniency bias |