Similar Search Results

Optimal Contracting with Endogenous Project Mission

Cassar, Lea - 2017

I analyze a model in which a principal offers a contract to an agent and can influence the agent's marginal return of …

Persistent link: https://www.econbiz.de/10012966930

Gottardi, Piero - 2012

requires the use of an appropriate incentive contract so as to realign his interests with those of the principal. The parties … of the optimal flexible contract both when the parties have sharp probabilistic beliefs over the possible events in which … risk aversion, the higher the agency costs for delegation and hence the less profitable is a flexible contract versus a …

Persistent link: https://www.econbiz.de/10013116425

Gift-Exchange, Incentives, and Heterogeneous Workers

Non, Arjan - 2011

. Furthermore, since some workers do not reciprocate the principal's altruism, the principal may find it optimal to write a contract … that simultaneously signals his altruism and screens reciprocal worker types. Such a contract is characterized by …

Persistent link: https://www.econbiz.de/10013121201

Incentives, Reputation and the Allocation of Authority

Englmaier, Florian - 2010

We address the question how much authority a principal should delegate to a manager with conflicting interests and uncertain ability in a context in which the manager has both compensation-based and reputational incentives. The optimal level of authority balances the value of the manager's...

Persistent link: https://www.econbiz.de/10013146792

Measuring Ratchet Effects within a Firm : Evidence from a Field Experiment Varying Contractual Commitment

Bellemare, Charles - 2014

We present results from a field experiment designed to measure the importance of managerial commitment to a contract … below that observed on a similar (control) terrain on which the firm had committed to the contract. Our results suggest that …

Persistent link: https://www.econbiz.de/10013048817

Management Incentives Under Formula Apportionment - Tax-Induced Distortions of Effort and Compensation in a Principal-Agent Setting

Martini, Jan T. - 2014

The introduction of a common consolidated corporate tax base (CCCTB) and tax allocation via formula apportionment (FA) is hotly debated in the European Union (EU) since more than a decade. While the literature has thoroughly analyzed the economic effects of FA from a macro-level perspective, the...

Persistent link: https://www.econbiz.de/10013048829

A Theory of Tax Avoidance -- Managerial Incentives for Tax Planning in a Multi-Task Principal-Agent Model

Ewert, Ralf - 2014

We derive determinants of tax avoidance by means of a multi-task principal-agent model. We extend prevailing models by integrating both corporate and individual income taxation as well as by including tax planning effort in the agent's action portfolio. Our model shows novel and apparently...

Persistent link: https://www.econbiz.de/10013051278

Delegation and Dynamic Incentives

Shin, Dongsoo - 2014

Using an agency model, we show how delegation, by generating additional private information, improves dynamic incentives under limited commitment. It circumvents ratchet effects and facilitates the revelation of persistent private information through two effects: a play-hardball effect, which...

Persistent link: https://www.econbiz.de/10013053709

Corporate Deductibility Provisions and Managerial Incentives

Köthenbürger, Marko - 2014

Using an agency model of firm behavior, the paper analyzes whether the cost of investment should be tax exempt. The findings suggest that, when managers engage in wasteful capital expenditures, welfare may decline if the cost of investment is tax deductible, as commonly advocated. The extent to...

Persistent link: https://www.econbiz.de/10013060519

Academics Appreciate Awards - A New Aspect of Incentives in Research

Frey, Bruno S. - 2009

This paper analyzes awards as a means of motivation prevalent in the scientific community, but so far neglected in the economic literature on incentives, and discusses their relationship to monetary compensation. Awards are better suited than performance pay to reward scientific tasks, which are...

Persistent link: https://www.econbiz.de/10012765608