We examine how competition in supplier industries affects CEO incentive intensity in procuring firms. Using the Input-Output Accounts Data (IO Data) published by the Bureau of Economic Analysis (BEA), we compute a weighted supplier industry competition measure. We then predict and find that...

This study investigates experimentally how mutual monitoring affects effort when employees are compensated via rank-order tournaments. Theory and anecdotal evidence suggest that mutual monitoring may either decrease effort by facilitating collusion or increase effort by stimulating competition....