We examine how agency problems in the workplace interact with compensation policies by taking advantage of the structure of the hotel industry, in which many chains have both company managed and franchised properties. As residual claimants on their properties' profits, franchisees have stronger...

In this paper, we discuss a manager's allocation problem. Two managers allocate their heterogeneous employees - each manager allocates two high types and two low types - in groups of two in order to compete for an exogenous contest prize in a two period model. There are three possibilities of...

When organizational structures and contractual arrangements face agents with a significant risk of termination in the short term, such agents may under-invest in projects whose results would be realized only in the long term. We use NBA data to study how risk of termination in the short term...

This paper analyzes data from a tournament, namely the National Hockey League regular scheduled season of games, which provides incentives to increase effort in order to reach the playoffs and incentives to decrease effort once a team has been eliminated from playoff considerations because of...

This study examines ways in which workers respond to implicit incentives. Specifically, we examine the extent to which workers shift their effort to activities that are measured and which have been previously rewarded in the labor market. To examine this question, we examine the changes in the...

Agency law provides a set of rules that allow business relationships to flourish. Without agency law, business relationships would be exposed to problems arising from asymmetric information that would inevitably be used to the detriment of the less knowledgeable party. This paper discusses the...

Purpose – The purpose of this paper is to research the travel agencies’ communication with market segments. Communication with market segments takes into account marketing communication means as well as the implementation of different business orientations. Design – Special emphasis is...