This article studies the design of optimal mechanisms to regulate entry in natural oligopoly markets, assuming the …

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 …

tournament system induces a higher total output than the optimum premium system. This result occurs because a promotion regime …

Incentives theory suggests that compensation schemes should be analyzed along two dimensions: controllability and … qualitative feedback from the managers involved, are analyzed. It is argued that EVA bonus schemes may have a major …