Thanassoulis, John - In: Management Science 59 (2013) 2, pp. 402-419
must use some variable remuneration. Such remuneration introduces a myopia problem: an executive would wish to inflate …. Convergence in size among firms makes the cost of managing the myopia problem grow faster than the cost of managing the effort … problem. Eventually, the optimal contract jumps from one deterring myopia to one tolerating myopia. Under some conditions, the …
