misalignment between managers and the firm, these two purposes are in conflict. This is because the worker with the largest private …: employees that create lower expected profits as managers have yet better promotion prospects. That finding still holds when the … firm owner optimally chooses the promotion rule, the degree of delegation, and wage payments to both employees and managers …

Economists have a well-developed theory of value but the theory of why people hold the values they do is rudimentary at … positive theory of values is relatively under- developed. In this paper we propose a simple yet general way to think about …