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How Much to Pay in Cash? Employee Retention via Stock Options

Gurtoviy, Ruslan; González, Luis G. - Max-Planck-Institut für Ökonomik, Max-Planck-Gesellschaft - 2008

We model deferred compensation as a share of an uncertain future profit granted by a financially constrained employer to her employee in mutual agreement. Deferred compensation serves as a retention mechanism, helping the employer to avoid bankruptcy. The optimal combination of cash and deferred...

Persistent link: https://www.econbiz.de/10005765181

Tournaments versus Piece Rates under Limited Liability

Kräkel, Matthias - Volkswirtschaftliche Fakultät, … - 2004

tournaments and piece rates as alternative incentive schemes has focused on the case of unlimited liability. However, in practice … under piece rates than under tournaments. Moreover, if first-best implementation is not achieved and workers earn positive … rents, efforts and profits will be larger for piece rates than for tournaments given sufficiently convex costs. While …

Persistent link: https://www.econbiz.de/10005785900

Price Discrimination and Social Network : Evidence from North American Auto Dealership Transaction Data

Tsuru, Tsuyoshi; Owan, Hideo; Uehara, Katsuhito - Institute of Economic Research, Hitotsubashi University - 2010

Using personnel and transaction data obtained from two auto dealerships located in a large city in Canada, we examine whether same or different ethnic matches between salespersons and customers affect the prices and quantities of transactions. First, compared with White-White matches, we find...

Persistent link: https://www.econbiz.de/10008500324

非線形報酬制度のインセンティブ効果とエスニシティの影響 : 北米自動車販売会社の取引データに基づく実証分析

都留, 康; 大湾, 秀雄; 上原, 克仁 - Institute of Economic Research, Hitotsubashi University - 2008

...

Persistent link: https://www.econbiz.de/10008500338

Incentives and Gaming in a Nonlinear Compensation Scheme: Evidence from North American Auto Dealership Transaction Data

Owan, Hideo; Tsuru, Tsuyoshi; Uehara, Katsuhito - Institute of Economic Research, Hitotsubashi University - 2009

This paper examines the incentive effect of a discontinuous and nonlinear compensation scheme, using the transaction data provided by two North American auto dealerships. Under the nonlinear scheme, a salesperson's expected daily commission revenue critically depends on his position in the pay...

Persistent link: https://www.econbiz.de/10008500376

Incentives, Gaming, and the Nonlinear Pay Scheme: Evidence from Personnel Data in a Large Japanese Auto Sales Firm

Tsuru, Tsuyoshi - Institute of Economic Research, Hitotsubashi University - 2008

This paper examines incentives and gaming behavior in a sales workforce using personnel records from one of Japan's largest auto sales chains. The company replaced a simple, linear compensation system in 2000 with nonlinear pay scheme kinked around a draw line. Econometric analysis indicates the...

Persistent link: https://www.econbiz.de/10005450415

Tournaments versus Piece Rates under Limited Liability

Kräkel, Matthias - 2004

Persistent link: https://www.econbiz.de/10010333996

HELPING AND SABOTAGING IN TOURNAMENTS

KRÄKEL, MATTHIAS - In: International Game Theory Review (IGTR) 07 (2005) 02, pp. 211-228

A two-stage, two-person tournament is discussed, in which each player can influence the other one at the first stage by choosing help, sabotage or no action. At the second stage, the players choose effort to win the tournament. Helping and sabotaging have two effects — they influence the...

Persistent link: https://www.econbiz.de/10005081039

How Much to Pay in Cash? Employee Retention via Stock Option

Gonzalez, Luis G.; Gurtoviy, Ruslan - Max-Planck-Institut für Ökonomik <Jena> / Abteilung … - 2008

We model deferred compensation as a share of an uncertain futureprofit granted by a financially constrained employer to her employeein mutual agreement. Deferred compensation serves as a retentionmechanism, helping the employer to avoid bankruptcy. The optimalcombination of cash and deferred...

Persistent link: https://www.econbiz.de/10005866781

Tournaments versus Piece Rates under Limited Liability

Krakel, Matthias - In: International Journal of Business and Economics 5 (2006) 3, pp. 185-199

results show that piece rates dominate tournaments if idiosyncratic risk is sufficiently high despite the partial insurance …

Persistent link: https://www.econbiz.de/10010837269