Several countries have implemented bonus taxes for corporate executives in response to the financial crisis of 2007-2010. Using a principal-agent model, this paper investigates the incentive effects of bonus taxes by analyzing the agent's and principal's behavior. Specifically, we show how bonus...

The television broadcasting industry is of crucial economic and social importance. Traditionally, this industry has been dominated by free TV but due to technological progress, pay TV has emerged as a competing business model. A key question for the pay TV broadcasters is whether to air...

This paper develops a simulation model to compare the performance of two stylized manufacturing networks: the lead factory network (LFN) and the archetype network (AN). The model identifies the optimal network configuration and its implications for coordination mechanisms. Using an NK simulation...