misalignment between managers and the firm, these two purposes are in conflict. This is because the worker with the largest private …: employees that create lower expected profits as managers have yet better promotion prospects. That finding still holds when the … firm owner optimally chooses the promotion rule, the degree of delegation, and wage payments to both employees and managers …

We provide a theory of how growth, corruption, and a low-powered public-sector pay scale coexist in a stable … a tournament, to address how a low-powered pay scale can effectively elicit effort in a tournament infested with …