leads to weaker incentives for effort, compared with nonintegration. Our theory makes minimal assumptions about the … division managers. The division managers' job is to create profitable investment projects. Giving the managers incentives to do …' incentives. The resulting tradeoff between a better use of resources and diminished incentives for effort determines whether …

less exposed to moral hazard risk, face more powerful performance incentives, and are more productive. Under-consumption of …

: selfish workers who only respond to monetary incentives, and conditionally cooperative workers who might voluntarily provide …-select into firms that differ in their incentives as well as their resulting level of team work. Our model can explain why firms …

and Moore still hold. It is shown that investment incentives are guided by an additional element to standard hold … overinvestment. Although investment incentives are always positive from a social perspective, they can be negative from an individual …

from offering their employees adequate incentives to perform the appropriate mix of tasks. The paper also shows how …