Jerath, Kinshuk; Netessine, Serguei; Zhang, Z. John - 2007
reduction. In this paper, we invoke agency theory to determine compensation plans for sales and operations managers to … functions. Furthermore, a simple profit-sharing contract does not work, either, because of the free-rider problem. However, we … show that each of the following two contract schemes can always achieve coordination: (1) rewarding the operations manager …