Fanti, Luciano; Meccheri, Nicola - Dipartimento di Economia e Management, Università … - 2010
This paper studies equilibrium incentive contracts in a Cournot duopoly, in which institutional arrangements constrain firms to pay (risk-neutral) workers a given salary. In this context, performance-related-pay (PRP) and relative performance evaluation (RPE) are compared in terms of resulting...