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substitutability than it really has. This is so either because managers are biased and perceive the good in this way, or because firms …
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assign a non-profit-maximization objective to their managers. Consequently, managers in a delegation game invest more in cost …
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assign a non-profit-maximization objective to their managers. Consequently, managers in a delegation game invest more in cost …
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profitable for owners to hire biased managers. Our work shows that a universal policy that effectively eliminates such biases …
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contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits …, while the second contract gives an additional sales bonus. Although theory predicts the second contract to be chosen, it is … only rarely chosen in the experimental markets. This behavior is rational given that managers do not play according to the …
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