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relationship is terminated, is determined by the contract terms. We characterize the properties of the optimal dynamic equilibria …
Persistent link: https://www.econbiz.de/10014118155
We consider a long-term contractual relationship in which a buyer procures a fixed quantity of a product from a supplier and then sells it on the market. The production cost is private information and evolves randomly over time. The solution to this dynamic principal-agent problem involves a...
Persistent link: https://www.econbiz.de/10014478916
equilibrium contract parameters along with the corresponding retail price and order quantity−all as functions of the demand curve …
Persistent link: https://www.econbiz.de/10012846522
menu contracts. Under the wholesale price contract, we specify two practical regimes: pull and push. We derive and compare … the initial reliability heterogeneity in both the push and pull regimes. Under the screening menu contract, we also …
Persistent link: https://www.econbiz.de/10012838902
We study a retailer's sourcing contract when the supplier's reservation profit (offered by his outside options) depends … supplier's marginal reservation profit. In this case, the optimal contract quantities maximize the supply chain profits for the … contract. Observations from our analysis contrast with those derived from previous studies, complementing the theory of …
Persistent link: https://www.econbiz.de/10012846558
contract. While enabling the principal to plan and control the project process better, the IPE may also adversely affect the … involves subjective measures, not using IPE may be in the principal's interest; the reason is that the contract now features a …
Persistent link: https://www.econbiz.de/10013123939
, however, Oyer (2000) shows that a quota-bonus contract -- a widely adopted salesforce compensation contract in the practice … realizations higher than the inventory level are unobservable), a quota-bonus contract is the optimal equilibrium contract, and it …
Persistent link: https://www.econbiz.de/10012973751
This paper investigates the effects of the Sarbanes-Oxley Act (SOX) on CEO compensation, using panel data constructed for the S&P 1500 firms on CEO compensation, financial returns, and reported accounting income. Empirically SOX (i) changes the relationship between a firm's abnormal returns and...
Persistent link: https://www.econbiz.de/10012904043
This paper investigates the effects of regulatory interventions on contracting relationships within firms by examining the impacts of the Sarbanes-Oxley Act (SOX) on CEO compensation. Using panel data of the S&P 1500 firms, it quantifies welfare gains from a dynamic principal-agent model of...
Persistent link: https://www.econbiz.de/10013240930
This paper investigates the effects of regulatory interventions on contracting relationships within firms by examining the impacts of the Sarbanes–Oxley (SOX) Act on CEO compensation. Using panel data of the S&P 1500 firms, it quantifies welfare gains from a principal–agent model with hidden...
Persistent link: https://www.econbiz.de/10014244206