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In order to get good positions in companies, people try to enter highly-ranked universities. However, abilities vary greatly between individuals. High-ability individuals have an incentive to send signals to firms by obtaining a higher level of education in order to distinguish themselves from...
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We study internal organization of a firm that comprises a CEO and two division managers. The two key ingredients of our model are externalities among divisions' projects that may require coordination and effort incentives for the CEO and the two division managers. Depending on how decision...
Persistent link: https://www.econbiz.de/10010596065
We study internal organization of a firm that comprises a CEO and two division managers. The two key ingredients of our model are externalities among divisions' projects that may require coordination and effort incentives for the CEO and the two division managers. Depending on how decision...
Persistent link: https://www.econbiz.de/10010581361
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In this paper we develop a search model that allows for Pareto-ranked multiple equilibria and investigate its implications on organizational diversity. The novel feature of the model is that multiple equilibria are obtained by the self-contained feedback mechanism between optimal contracting...
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