contracts which determine their managers' salaries. One contract simply gives managers incentives to maximize firm profits …, while the second contract gives an additional sales bonus. Although theory predicts the second contract to be chosen, it is … only rarely chosen in the experimental markets. This behavior is rational given that managers do not play according to the …

We propose a novel tournament design that incorporates the main properties of a round-robin tournament, a Swiss … tournament, and a race. Following an equilibrium analysis, we compare 36 tournament structures inherent in our model and several … well-known tournament models from the literature, on the basis of expected total equilibrium effort. We show that two of …

compensation to managers in low-tax jurisdictions, if payroll enters the FA formula. Managers in high-tax jurisdictions face the …

power. Examples include the labor-managed firm, mixed oligopoly, and delegation models. These models typically retain the …