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management position. However, if non-contractible managerial decision rights give rise to private benefits and preference … managerial decision rights and performance-based promotions leads to a situation often referred to as the Peter principle … performance-based promotions and restricting managerial decision rights. …
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We study, experimentally, how two alternative incentive mechanisms affect team performance, and how a team chooses between alternative mechanisms. We study a group incentive mechanism, where team output is shared equally among team members, and a hierarchical mechanism team output is allocated...
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We study interfirm competition on a product market where effort decisions are delegated to the firms' workers. Intrafirm organization is captured by a principal-multiagent framework where firm owners implement alternative compensation schemes for the workers. We show that the value of delegation...
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