Managerial incentives for process innova
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Bastiaan M. Overvest; Jasper Veldman
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Article
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2008
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John Wiley and Sons
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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