We explore the phenomena of game companies offering to pay users in "virtual" benefits to take actions in-game that earn the game company revenue from third parties. Examples of such "incentivized actions" include paying users in "gold coins" to watch video advertising and speeding in-game...

A firm hires an agent (e.g., store manager) to undertake both operational and marketing tasks. Marketing tasks boost demand, but for demand to translate into sales, operational effort is required to maintain adequate inventory. The firm designs a compensation plan to induce the agent to put...