In many markets, it is common for headquarters to create a price list but grant local salespeople discretion to negotiate prices for individual transactions. How much (if any) pricing discretion headquarters should grant is a topic of debate within many firms. We investigate this issue using a unique data set from an indirect lender with local pricing discretion. We estimate that the local sale...

We study a controlled corporate experiment in which loan officers was altered from fixed salary to volume-based pay. The incentives increased aggressiveness of origination: higher origination rates (+31%), loan sizes (+15%), and default rate (+28%). The effects are partly driven by moral hazard: approval decision is driven by loan officers’ discretion; however, default is uncorrelated with disc...

Throughout the criminal justice system, prosecutors have wide discretion to exercise their authority in determining what crimes should be prosecuted. This discretion has historic support through both constitutional separation of powers doctrines and public policy. This discretion is based on a variety of factors, including the severity of the crime, the extent of the evidence, prosecutorial res...

The United States Sentencing Commission was created to develop federal sentencing guidelines, which restrict judicial discretion and were found to increase the average sentence length while leaving unchanged the likelihood of resolution through plea bargaining. A game theoretic model is developed in which a sentencing commission may impose guidelines or defer to judicial discretion; then a defe...

OBJECTIVES In recent decades, work ability index (WAI) has been a common practical tool to measure individuals' work ability in many European, Asian and South American countries. However, there is no study concerning work ability in Iran. The aim of this study was to determine the work ability index in an Iranian petrochemical job setting and to examine its relationship with psychosocial factor...