منابع مشابه
Managerial Incentives and Competition
This paper experimentally tests the impact of managerial incentives on competitive (market) outcomes. We use a Cournot duopoly game to show that when managers’ incentives are based on the firm’s absolute performance (profits), collusion can be sustained. However, when managers’ incentives are based on the firm’s relative performance (their profits relative to the other firm’s profits), this dri...
متن کاملCompetition and Incentives with Motivated Agents
A unifying theme in the literature on organizations such as public bureaucracies and private nonprofits is the importance of mission, as opposed to profit, as an organizational goal. Such mission-oriented organizations are frequently staffed by motivated agents who subscribe to the mission. This paper studies incentives in such contexts and emphasizes the role of matching the mission preference...
متن کاملPlatform competition and seller investment incentives
Many products and services are not sold on open platforms but on competing for-profit platforms, which charge buyers and sellers for access. What is the effect of for-profit intermediation on seller investment incentives? Since for-profit intermediaries reduce the available rents in the market, one might naively suspect that sellers have weaker investment incentives with competing for-profit pl...
متن کاملMarket Competition and Lower Tier Incentives
The relationship between competition and performance–related pay has been analyzed in single–principal–single–agent models. While this approach yields good predictions for managerial pay schemes, the predictions fail to apply for employees at lower tiers of a firm’s hierarchy. This paper describes a principal multi-agent model of incentive pay that analyzes the effect of changes in the competit...
متن کاملIncentives and competition under moral hazard
The work introduces a simple framework to study the relationship between competition and incentives under non-exclusivity. We characterize the equilibria of an insurance market where intermediaries compete over the contracts they offer to a single consumer in the presence of moral hazard. Non-exclusivity is responsible for under-insurance and positive profits in an otherwise competitive set-up....
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ژورنال
عنوان ژورنال: European Economic Review
سال: 2017
ISSN: 0014-2921
DOI: 10.1016/j.euroecorev.2017.06.012