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We develop a product market theory that explains why firms invest in general training of their workers. We consider a …
Persistent link: https://www.econbiz.de/10011402873
This paper derives a three stage Cournot-oligopoly game for product innovation, expenditure on introducing the product …
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characterizes the conditions for which, under Cournot oligopoly, existing firms behave more collusively than in a standard Cournot …
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to be incompatible with the fact that the bulk of many high-proffile managers' compensation is in the form of various …
Persistent link: https://www.econbiz.de/10003961700
This paper investigates whether observed executive compensation contracts are designed to provide risk-taking incentives in addition to effort incentives. We develop a stylized principal-agent model that captures the interdependence between firm risk and managerial incentives. We calibrate the...
Persistent link: https://www.econbiz.de/10011378949
Standard principal-agent theory predicts that large firms should not use employee stock options and other stock …
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