Another Look at Job Design with Conflicting Tasks

This paper provides another look at job design with conflicting tasks. In a two-stage moral hazard framework with risk-neutral agents and limited liability, we study externalities that the first-stage outcome has on the second-stage success probability. We focus on outcome externalities with regard to the fixed (i.e. effort independent) part of the second-stage success probability. Our results differ from the case studied by Schmitz (), who considers outcome externalities with regard to the marginal second-stage success probability.