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Managerial Incentives and the International Organization of Production

Helpman, Elhanan; Grossman, Gene M. - 2021

We develop a model in which the heterogeneous firms in an industry choose their modes of organization and the location of their subsidiaries or suppliers. We assume that the principals of a firm are constrained in the nature of the contracts they can write with suppliers or employees. Our main...

Persistent link: https://www.econbiz.de/10013240610

Rank-Order Tournaments as Optimum Labor Contracts

Lazear, Edward P.; Rosen, Sherwin - 2021

This paper analyzes compensation schemes which pay according to an individual's ordinal rank in an organization rather than his output level. When workers are risk neutral, it is shown that wages based upon rank induce the same efficient allocation of resources as an incentive reward scheme...

Persistent link: https://www.econbiz.de/10013248434

Targeted Export Promotion with Several Oligopolistic Industries

Dixit, Avinash - 2010

In this paper we ask whether a policy of targeted export promotion can raise domestic welfare when several oligopolistic industries all draw on the same scarce factor of production. Our point of departure is one of Cournot duopoly in which a single home firm competes with a single foreign firm...

Persistent link: https://www.econbiz.de/10012760334

Optimal Trade and Industrial Policy Under Oligopoly

Eaton, Jonathan; Grossman, Gene M. - 2021

In this paper we provide an integrative treatment of the welfare effects of trade and industrial policy under oligopoly …

Persistent link: https://www.econbiz.de/10013227224

The Peter Principle : Promotions and Declining Productivity

Lazear, Edward P. - 2021

Many have observed that individuals perform worse after having received a promotion. The most famous statement of the idea is the Peter Principle, which states that people are promoted to their level of incompetence. There are a number of possible explanations. Two are explored. The most...

Persistent link: https://www.econbiz.de/10013247253

Incentives and Wage Rigidity

Lazear, Edward P. - 2021

With the growth of the literature on incentive compensation has come the belief by some that incentive pay may be less rigid than pay that is not designed to effect incentives. Some have gone so far as to argue that this may explain differences in unemployment rates across countries. it is shown...

Persistent link: https://www.econbiz.de/10013218839

Output-Based Pay : Incentives or Sorting?

Lazear, Edward P. - 2021

of the typical American firm. Variable pay is usually touted as a way to provide incentives to managers whose interests … received much attention, but that is consistent with may of the facts, is selection. Managers and industry specialists may have … information about a firm's prospects that is unavailable to outside investors. In order to induce managers to be truthful about …

Persistent link: https://www.econbiz.de/10013233852

Incentive Contracts

Lazear, Edward P. - 2021

Persistent link: https://www.econbiz.de/10013236722

Matching and Sorting in a Global Economy

Grossman, Gene M. - 2013

, labor and "managers", each with a distribution of ability levels. Production combines a manager of some type with a group of …

Persistent link: https://www.econbiz.de/10013074651

The Value of Bosses

Lazear, Edward P. - 2014

How and by how much do supervisors enhance worker productivity? Using a company-based data set on the productivity of technology-based services workers, supervisor effects are estimated and found to be large. Replacing a boss who is in the lower 10% of boss quality with one who is in the upper...

Persistent link: https://www.econbiz.de/10013065643