The Quality and Outcomes Framework (QOF) is a Pay-for-Performance scheme introduced in England in 2004 to reward primary care providers. This incentive scheme provides financial incentives that reward the overall performance of a practice, not individual effort. Consequently, an important...

We consider how purchasers and providers negotiate the quality element of contracts when the purchasers are required to link a fixed proportion of revenue to quality. A simple model predicts that the complexity of the quality element will depend on purchaser and provider characteristics. Using...

The paper studies tax evasion in an evolutionary setting. In addition to standard variables such as the fine they may have to pay if found guilty or the probability of being audited, individuals' inclination to engage in tax evasion may also be affected by social interactions. Individuals...

We study a Cournot duopoly where firms can decide to incur fixed costs in activities that improve their competitiveness (i.e. product development or process innovation). Innovation costs generate discontinuities in the firms' quantity best response functions and, in turn, a variety of...

The paper studies the short run and long run effects of the introduction of a Pay-for-Performance, P4P, payment scheme. Providers of a public service are assumed to employ more than one agent. If agents have different attitude to the job (for example only a portion of the agents has some form of...

One objective of this chapter is to provide the reader with a clear and intuitive, but yet rigorous, description of the topic of strategic managerial incentives under oligopolistic competition. We further discuss the closely related issues of vertical separation where a manufacturer delegates...