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The Pygmalion effect : an agency model with reference dependent preferences

Daido, Kohei; Itoh, Hideshi - 2005

We attempt to formulate and explain two types of self-fulfilling prophecy, called the Pygmalion effect (if a supervisor thinks her subordinates will succeed, they are more likely to succeed) and the Galatea effect (if a person thinks he will succeed, he is more likely to succeed). To this...

Persistent link: https://www.econbiz.de/10010261169

The Optimality of Simple Contracts: Moral Hazard and Loss Aversion

Herweg, Fabian; Müller, Daniel - 2008

This paper extends the standard principal-agent model with moral hazard to allow for agents having reference- dependent preferences according to Köszegi and Rabin (2006, 2007). The main finding is that loss aversion leads to fairly simple contracts. In particular, when shifting the focus from...

Persistent link: https://www.econbiz.de/10010264926

Price Delegation in Sales Organizations: An Empirical Investigation

Hansen, Ann-Kristin; Joseph, Kissan; Krafft, Manfred - In: BuR - Business Research 1 (2008) 1, pp. 94-104

. Following this prescription, marketing scholars have developed strong theoretical arguments in favor of delegating pricing … authority to their salespeople. Given this divergence between theory and practice, we develop and empirically test two … mitigating factors that could potentially explain why firms restrict pricing authority. We test our hypotheses on a sample of 222 …

Persistent link: https://www.econbiz.de/10010421326

Pricing the multiple-choice nested knapsack problem

Drexl, Andreas; Jørnsten, Kurt - 2007

The multiple-choice nested knapsack problem (MCKP) is a generalization of the ordinary knapsack problem, where the set of items is partitioned into classes. The binary choice of selecting an item is replaced by taking exactly one item out of each class of items. Due to the fact that the MCKP is...

Persistent link: https://www.econbiz.de/10011558832

Pricing the generalized assignment problem

Drexl, Andreas; Jørnsten, Kurt - 2007

The generalized assignment problem (GAP) examines the maximum profit assignment of jobs to processors such that each job is assigned to precisely one processor subject to capacity restrictions on the processors. Due to the fact that the GAP is an NP-hard integer program dual prices are not...

Persistent link: https://www.econbiz.de/10011558833

Incentive compability of dual transfer pricing

Carstens, Stefan; Weinem, Michael - 2000

means of a dual transfer pricing mechanism based on Ronen and McKinney (1970). The model is designed in a simple fashion …

Persistent link: https://www.econbiz.de/10010302269

The Effect of Noise in a Performance Measure on Work Motivation

Sloof, Randolph; van Praag, C. Mirjam - 2008

than in the stable environment. This finding is in line with standard agency theory and contrasts a distinct element of … expectancy theory; noisier performance measures do not lower work motivation. …

Persistent link: https://www.econbiz.de/10010325762

Intrafirm conflicts and interfirm price competition

Güth, Werner; Pull, Kerstin; Stadler, Manfred - 2011

We study interfirm price competition in the presence of horizontal and vertical intrafirm conflicts in each firm. Intrafirm conflicts are captured by a principal-agent framework with firms employing more than one agent and implementing a tournament incentive scheme. The principals offer premium...

Persistent link: https://www.econbiz.de/10010281682

The crowding-out of work ethics

Grepperud, Sverre; Pedersen, Pål Andreas - 2001

This paper analyses optimal contracts in a principal-agent model where the agent is intrinsically motivated at the outset and there is an endogenous relationship between the structure of incentive payments and intrinsic motivation (crowding effects). The analysis shows that crowding effects have...

Persistent link: https://www.econbiz.de/10010290692

Price setting and price adjustment in some European Union countries: Introduction to the special issue

Levy, Daniel; Smets, Frank - 2010

This introductory essay briefly summarizes the eleven empirical studies of price setting and price adjustment that are included in this special issue. The studies, which use data from several European countries, were conducted as part of the European Central Bank's Inflation Persistence Network.

Persistent link: https://www.econbiz.de/10010336066