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Incentive Contracts in Projects with Unforeseeable Uncertainty

✍ Scribed by Svenja C. Sommer; Christoph H. Loch

Book ID
118091563
Publisher
Production and Operations Management Society
Year
2009
Tongue
English
Weight
205 KB
Volume
18
Category
Article
ISSN
1059-1478

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In a differentiated Cournot duopoly, we examine the contracts that firms' owners use to compensate their managers and the resulting output levels, profits and social welfare. If products are either sufficiently differentiated or sufficiently close substitutes, owners use Relative Performance contrac