We investigate how the manager of a publicly traded firm may distort operational decisions to signal product quality when he/she receives equity-based incentives offered by shareholders. We show that the shareholders' optimal incentive contract induces the manager to engage in wasteful actions....

Overview: 3-D negotiation in a nutshell -- Negotiate in 3-D -- Do a 3-D audit of barriers to agreement -- Craft a 3-D strategy to overcome the barriers -- Set up the right negotiation, "away from the table" -- Get all the parties right -- Get all the interests right -- Get the no-deal options...