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We develop a model in which the principal and the agent share private information about the value of the agent for a multi-agent organization. The principal can disclose private information and make public the relative standing or status of all agents in the organization. We study whether it is...
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We address the question how much authority a principal should delegate to a manager with conflicting interests and uncertain ability in a context in which the manager has both compensationbased and reputational incentives. The optimal level of authority balances the value of the manager's...
Persistent link: https://www.econbiz.de/10010333720
We address the question how much authority a principal should delegate to a manager with conflicting interests and uncertain ability in a context in which the manager has both compensation-based and reputational incentives. The optimal level of authority balances the value of the manager's...
Persistent link: https://www.econbiz.de/10010270502
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What role do contracts play in long-term relationships? Very little, if any, according to the relational contract … literature. It is not the contract that induces promise-keeping but the imposition of (or threat of imposing) relational or ….” Recognizing these benefits but wary of inducing too much litigation, the most effective means for deterring breach of contract …
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Studies show that failing to align formal contracts with transaction attributes reduces relationship performance. However, few studies consider either how the effects of misalignment differ across outcome types or the mechanisms through which misalignment affects performance. This study examines...
Persistent link: https://www.econbiz.de/10014036423