This paper studies the dynamic interaction between product market competition and incentives against shirking. In contrast with standard results, efficiency wages paid by each firm can decrease when competition (i.e. the number of firms in the product market) increases. Discretionary bonuses, on...

This note investigates the possibility of profit raising entry in network industries where firms follow Corporate Social Responsibility (CSR) behaviours, showing the interaction between the network and CSR features. In particular, for high levels of the network effect, an incumbent’s profits...