contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits …, while the second contract gives an additional sales bonus. Although theory predicts the second contract to be chosen, it is … only rarely chosen in the experimental markets. This behavior is rational given that managers do not play according to the …

executive officers. However, firms are run by teams of managers, and a theory of the firm should also explain the distribution …

: reducing the opportunity for managers to transfer value to equityholders from creditors via strategic default, and reducing the …

This paper analyzes the links between corporate tax avoidance, the growth of high-powered incentives for managers, and …

from trade under Bertrand and Cournot oligopoly. Firms differentiate their products to mitigate competition, but only if …

provision of marginal incentives, and applies the theory to explain variation in the form of compensation of over-the-road truck … of hauls in a way that is consistent with the theory. By contrast, we find that vehicle ownership, which defines a driver …