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We study multi-period sales-force incentive contracting where salespeople can engage in effort gaming, a phenomenon that has extensive empirical support. Focusing on a repeated moral hazard scenario with two independent periods and a risk-neutral agent with limited liability, we conduct a...
Persistent link: https://www.econbiz.de/10012844376
E-commerce platforms, such as Amazon, Alibaba and Flipkart, that match sellers and consumers at an unprecedented scale, operate their internal search engines to help buyers find relevant products from a large number of sellers, and also allow sellers to advertise to consumers for positions in...
Persistent link: https://www.econbiz.de/10012844549
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Under the practice of “digital co-op”, manufacturers subsidize the online advertising expenditures of retailers that they sell their products through, even though retailers typically compete with manufacturers in the advertising market and appropriate a share of the manufacturers' channel...
Persistent link: https://www.econbiz.de/10011942297
Persistent link: https://www.econbiz.de/10012180457
We study multi-period salesforce incentive contracting when sales agents can dynamically choose between a safe action and a bold or risky action, where the bold action has higher expected sales but also higher polarization in sales and higher effort cost. Using a two-period model with ex-ante...
Persistent link: https://www.econbiz.de/10013227373