the loss due to the lower quality. The anticipation of this effect leads to reduced ex ante incentives for the supplier …?s management to raise quality. A spin-off may therefore be beneficial as it strengthens incentives. Costs and benefits of vertical …

the loss due to the lower quality. The anticipation of this effect leads to reduced ex ante incentives for the supplier …’s management to raise quality. A spin-off may therefore be beneficial as it strengthens incentives. Costs and benefits of vertical …

increases utility. It is assumed that each variety is owned by a monopoly. Workers can specialize in material goods production … bliss point can only be made better-off by an increase in diversity. If wages are set by monopoly unions rather than set …

incentives as well as the puzzling incompleteness of many economic contracts. …

reasonably approximate real-life decision makers? behavior. Testing this theory with field data is difficult since typically …

subordinate then is affected by the outcome of the task and he therefore has strong incentives to contribute to its success. There …

of the typical American firm. Variable pay is usually touted as a way to provide incentives to managers whose interests …

During the last two decades economists have made much progress in understanding incentives, contracts and organisations … effects of incentives. Economists may fail to understand the levels and the changes in behaviour if they neglect motives like … the desire to reciprocate or the desire to avoid social disapproval. We show that monetary incentives may backfire and …