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.
Arya, A., Jonathan Glover, and P. Liang. "Intertemporal Aggregation and Incentives." European Accounting Review 13, no. 4 (2004): 643-657.
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