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

The principal-agent model of executive compensation is of central importance to the modern theory of the firm and …

We argue that strategic interactions between firms in an oligopoly can explain the puzzling lack of high …. We derive the optimal compensation contracts for managers and demonstrate that the use of high-powered incentives will be … limited by the need to soften product market competition. In particular, when managers can be compensated based on their own …

shareholders and managers in which managers have private benefits or private costs of investment. Managers overinvest when they …, in isolation, is insufficient to identify whether managers have private benefits or private costs of investment. In order … to identify whether managers have private benefits or costs, we estimate the joint relationships between incentives and …