Academic work on sales compensation plans features agency models prominently, and these models have also been used to build decision aids for managers. However, empirical support remains sketchy. We conducted three experiments to investigate three unresolved predictions involving the...

An outstanding problem in marketing is why some firms in a competitive market delegate pricing decisions to agents and other firms do not. This paper analyzes the impact of competition on the delegation decision and, in turn, the impact of delegation on prices and incentives. The theory builds...

We test for three-way complementarities among information technology (IT), performance pay, and human resource (HR) analytics practices. We develop a principal-agent model examining how these practices work together as an incentive system that produces a larger productivity premium when the...

Planning und budgeting is often taken to be an end in itself rather than a means to an end. The purpose of this essay is to draw conclusions upon which to derive guidelines for a reform of planning und budgeting. The aim is to encourage a debate on the redirection or even partial rejection of...

In order to handle the increasing problem of abandoned end-of-life vehicles (ELVs) in Sweden, an incentive system was introduced in 1975. One of the cornerstones of the system is a premium received by the owner when an ELV is returned for dismantling. The premium is intended to create an...

Incentive pay systems have undergone major changes in recent decades. This paper investigates use of incentive pay systems in British and French private sector establishments in 2004, focusing on payment-by-results, merit pay, and profit sharing, using British and French workplace surveys: WERS...

If you pay peanuts, do you get monkeys? If teachers were better paid and higher up the national income distribution, would there be an improvement in pupil performance? Peter Dolton and Oscar Marcenaro-Gutierrez examine the enormous variation in teachers' pay across OECD countries and its...

Portfolio theory indicates that risk management should take place at the group level. Hedging at the project level or in the individual business areas may lead to suboptimal results. However, the efficiency of a profit centre depends on its management's being able to influence factors that are...