This paper examines the effect of imperfect labor market competition on the efficiency of compensation schemes in a … high degrees of vertical differentiation, i.e. low competition, low-ability agents are under-incentivized and exert too … little effort. For high degrees of competition, high-ability agents are over-incentivized and bear too much risk. For a range …

We analyze an oligopolistic competition with differentiated products and qualities. The quality of a product is not …-signaling competition. There are two regimes for separating equilibrium in our model depending on the parameters. Our analysis reveals that …, in one of the separating regimes, price signaling leads to intense price competition between the firms under which not …