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Entry and Managerial Incentives: A Note

✍ Scribed by Juan Carlos Bárcena-Ruiz; Marı´a Paz Espinosa


Book ID
108526978
Publisher
John Wiley and Sons
Year
2000
Tongue
English
Weight
185 KB
Volume
52
Category
Article
ISSN
0307-3378

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Managerial incentives for process innova
✍ Bastiaan M. Overvest; Jasper Veldman 📂 Article 📅 2008 🏛 John Wiley and Sons 🌐 English ⚖ 116 KB

## Abstract Cost‐reducing investments by firms are often not publicly observable. This lack of observability would preclude a strategic use of process innovation. However, we show that an observable and verifiable contract that provides direct monetary incentives for cost reductions — an innovation