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Competition, Risk and Managerial Incentives

Raith, Michael - 2001

This paper examines how the degree of competition among firms in an industry affects the optimal incentives that firms … changes in the nature of competition lead to changes in the equilibrium market structure. The main result is that as the … intensity of product market competition increases, principals unambiguously provide stronger incentives to their agents to …

Persistent link: https://www.econbiz.de/10014035986

Tournaments with gaps

Imhof, Lorens; Kräkel, Matthias - 2013

A standard tournament contract specifies only tournament prizes. If agents' performance is measured on a cardinal scale, the principal can complement the tournament contract by a gap which defines the minimum distance by which the best performing agent must beat the second best to receive the...

Persistent link: https://www.econbiz.de/10010198511

Optimal sourcing orders under supply disruptions and the strategic use of buffer suppliers

Parlane, Sarah; Ying Yi Tsai - 2014

This paper analyses procurement from two, risk-averse, suppliers who are responsible for the timely delivery of some inputs. Their production is subject to inherent disruptions. We characterize the optimal contracts when suppliers can invest to lower the risk of delays that are costly to the...

Persistent link: https://www.econbiz.de/10010418093