Gautier, Axel; Heider, Florian - In: Journal of Institutional and Theoretical Economics (JITE) 165 (2009) 4, pp. 622-649
This paper examines the agency cost of winner-picking in multidivision firms and uses explicit incentive contracts to analyze the interaction between corporate headquarters´ investment and incentive policies. Winner-picking, i.e., the efficient reallocation of scarce resources in an internal...