In an environment where managers’ability to generate pro…ts changes stochastically over time, we characterize the optimal turnover policy for a …rm hiring a succession of managers. The focus is on the interaction between the compensation scheme used to incentivize the managers’e¤ort and the retention policy used to screen the managers’types and induce the desired turnover. Our key positive resu...

We examine the role of managerial talent and its interaction with practices in determining firm performance. build a matched firm-director panel dataset for universe limited liability companies Italy, tracking individuals across different firms over time. define as management's capacity to boost firms' total factor productivity, estimated using two-way fixed effects model. Combining data survey...

We introduce a nonmonotonic framework for belief revision in which reasoning about the reliability of different pieces of information based on meta-knowledge about the information is possible. The approach is based on a Poole-style system for default reasoning in which entrenchment information is represented in the logical language. A notion of inference based on the least fixed point of a mono...

We propose a new semantics for modeling belief, mixing conncepts from qualitative probabilistic and classical possible world accounts. Our belief structures are coherent sets of qualitative plausibility measures and belief corresponds to truth in the most plausible worlds of each epistemic alternative. We provide an axiomatic characterization of these doxastic structures in a bimodal language, ...