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Aggregation and measurement errors in performance evaluation.

Abstract: In this paper, we at hand a sequential production setting wherein employing aggregate measures for performance evaluation substantiate superior to those fabricateed specifically to measure individual activity. In our setting, unverifiable inputs translate into verifiable measures via sum of two units types of shocks: the first is production errors that cause output to deviate from inputs, and the next to the first is measurement errors that arise in outputs themselves being stated imprecisely. Agents are evaluated using either individual or aggregate measures, where the former measures the





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