Job design with conflicting tasks reconsidered

▸ A principal wants two sequential tasks to be performed by wealth-constrained agents. ▸ Suppose the first-stage outcome influences the effectiveness of second-stage effort. ▸ The principal then prefers to hire one agent whenever the tasks are conflicting. ▸ In contrast, suppose first-stage effort influences the second-stage success probability. ▸ The principal then prefers to hire two agents whenever the tasks are conflicting.