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 کاملManagerial Motivation Dynamics and Incentives
Firms can increase profitability by appropriately motivating managers. We investigate drivers of managerial motivation, and propose how firms can use performance-pay to alter motivational patterns. We focus on the agent’s optimal effort decision in trading off compensation utility with effort cost in a static and dynamic setting. Surprisingly, we find that lower risk aversion or increased pay a...
متن کاملCartel Formation and Managerial Incentives
We study the formation of cartels within two di¤erent contexts. First, we consider internal-external stability based models which, due to rms free-riding incentives, lead to the inexistence of stable cartels. Second, we introduce the dynamic aspect of coalition formation. That is, when considering a cartel we consider also any cartel that can be reached through a succession of moves. Despite ...
متن کاملAnalyst Monitoring and Managerial Incentives
In this paper, we investigate whether an increase in analyst monitoring, which improves the informational efficiency of stock prices, necessarily translates into firms’ managers taking more value-enhancing decisions (“real efficiency”). We show that when the manager’s compensation is tied to stock prices, then an increase in analyst monitoring weakens managerial incentives by making the firm’s ...
متن کاملUncertainty , Investment , and Managerial Incentives ∗
This study provides evidence that managerial incentives, shaped by compensation contracts, help to explain the empirical relationship between uncertainty and investment. We develop a model in which the manager, induced by an incentive contract, makes investment decisions for a firm that faces time-varying volatility. In the model, a manager’s privately optimal investment response to a volatilit...
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ژورنال
عنوان ژورنال: Journal of Economics <html_ent glyph="@amp;" ascii="&"/> Management Strategy
سال: 1996
ISSN: 1058-6407,1530-9134
DOI: 10.1111/j.1430-9134.1996.00497.x