still benefits from the increase in the merged firm's total value. Moreover, given that the managers are compensated … according to an identical linear incentive scheme, the optimal shareholder policy always entails a corner solution. Managers …

assign a non-profit-maximization objective to their managers. Consequently, managers in a delegation game invest more in cost …

combination of profits and sales as incentives for their managers. On the second stage, the two managers compete in a tournament …This paper considers a two-stage game with two owners and two managers. On the first stage, the owners choose a linear … against each other. In a symmetric equilibrium, both owners induce their managers to maximize profits. In asymmetric …

the unverifiability problem of labor contracts. Under a zero-profit condition, both tournament types will yield first … all the bargaining power. However, if workers are rik averse or one worker has a lead a J-type tournament may dominate a U …-type tournament. …

triopoly. -- Artefactual field experiment ; subject pools ; Cournot oligopoly ; managers ; cheap talk … experiments, using both students and managers as subjects. Communication is implemented by two different devices, a ‘standardized … triopoly. Moreover, managers behave in a similar way under the two communication devices, while students are more influenced by …

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 …