We study a compensation problem for salespeople with learning potential. In our model, both the firm and sales agent …-run performance, this study advances our understanding of salesforce theory and practice …

multidimensional incentives, where salespeople have private information about customers. This allows us to ask novel substantive … two latent segments of salespeople- a “hunter” segment that is more efficient in loan acquisition and a “farmer” segment …

attract unprofitable customers, particularly when salespeople have high productivity and low risk (i.e., risk aversion times … selection problem for the salespeople. By solving the moral hazard and adverse selection problems simultaneously, we show that … to dissuade unprofitable customers, when firms hire salespeople, however, it requires lowering of both selling effort and …