"The pricing of transfers from parent to subsidiary is an oft-explored issue. Linking the cost of internal transfers with external market prices is one common approach, typically justified when the market for the good is perfectly competitive. This paper shows that imperfect competition may also...

There are many circumstances in which manufacturers provide inputs to wholesale customers only to subsequently compete with these wholesale customers in the retail realm. Such dual distribution arrangements commonly suffer from excessive encroachment in that the manufacturer's ex post retail...

This paper considers the desirability of aggregate performance measures in light of the fact that many individuals' performance incentives are driven by a desire to shape external perceptions (and thus future pay). In contrast to the case of explicit incentive contracts, we find that when...

The seminal "unraveling" result in the disclosure literature posits that discretion inevitably leads to full disclosure, even when such disclosure has detrimental consequences. In this paper, we revisit optimal disclosure of proprietary information when firms compete in multiple markets. The...

This paper presents an adverse selection model in which progressive taxation enhances productive efficiency by encouraging a principal (buyer) to be less aggressive in contracting with an agent (seller). Wary of padded cost budgets, the buyer employs a hurdle-rate procurement policy. With a low...

Organizational structure of firms is an important topic that has been widely discussed in virtually all management disciplines. The typical view of firm organization emphasizes enhancing efficiency by fully aligning incentives of all participants to achieve a common objective. Over the years,...

This paper presents one reason for adopting diverse work assignments, rooted in a desire to match employees' pay with the skills they have cultivated on the job. When on-the-job learning parlays into attractive external opportunities, employees may threaten to seek a different and higher paying...