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Profit sharing can lead to higher productivity and thus to higher firm profitability and employee wages. It may also … profit sharing increases earnings fluctuations, it also increases earnings growth in the longer term. As with any group … incentive plan, profit sharing may result in some workers benefiting from the effort of others without themselves exerting …
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pay and performance. To the extent that product-market competition can affect the incentive schemes offered by firms to … their executives, the analysis of the effects of competition on the structure of compensation may be informative for policy …
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In this lecture I first give an explanation for invidious preferences based on the (evolutionary) competition for …
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