منابع مشابه
The Power and Limits of Tournament Incentives
Tournaments provide incentives through the prize spread. Agents are predicted to work harder for higher prize spreads, and thus principals are predicted to maximize the spread. This paper shows experimentally how changing institutional environments affect the way that principals structure tournament incentives, and the degree of wage compression. While in some settings tournaments provide power...
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Mutual funds’ performance rankings are widely publicized in the media and have a strong impact on fund flows (see, e.g., Sirri and Tufano, 1998). In this paper, we study risk taking incentives of mutual fund managers who have ranking objectives (as in a tournament). First, in a two-period model, we analyze the game played by two risk-neutral fund managers with ranking objectives. We show that i...
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This paper presents theory and evidence on horizontal industry structure, focusing on situations where plant-level scale economies are small and market power is not an issue. At issue is the question: what makes industries necessarily fragmented? The theoretical model distinguishes between the structure of brands and firms in an industry by examining trade-offs associated with affiliation and i...
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This paper develops a competitive equilibrium model of CEO compensation and industry dynamics. CEOs make product pricing and product improvement decisions subject to shareholders compensation choices and idiosyncratic shocks to product quality. The choice of highpowered incentives optimally trades-o¤ the bene ts from expected product improvements and the associated agency costs. In market equi...
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Abstract: The processed potato industry is highly vertically coordina ted though the use of production contracts between growers and processors. Contracts in this industry are primarily used to combat market thinness and potato quality requirements. This study uses a two period principle-agent model to describe the incentives inherit in processing potato production contracts. Actual processor p...
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ژورنال
عنوان ژورنال: The Review of Financial Studies
سال: 2017
ISSN: 0893-9454,1465-7368
DOI: 10.1093/rfs/hhx064