Friebel, Guido; Raith, Michael - Institute for the Study of Labor (IZA) - 2006
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 …