IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/119514.html
   My bibliography  Save this paper

On Salesforce Compensation with Inventory Considerations

Author

Listed:
  • Rodriguez, Fabrizio

Abstract

This study critically examines Dai and Jerath's (2013) influential paper on incentive schemes in inventory management, revealing a substantial flaw: an equilibrium fails to exist for a broad set of parameters allowed by the paper. Illustrated through a specific example, we identify fundamental economic reasons behind this issue and propose discretization as a solution. Addressing the non existence problem reshapes key findings, clarifying and correcting counterintuitive notions the author had highlighted in the paper. This resolution ensures that inventory considerations no longer impact compensation, while preserving the informational value crucial to incentive schemes.

Suggested Citation

  • Rodriguez, Fabrizio, 2023. "On Salesforce Compensation with Inventory Considerations," MPRA Paper 119514, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:119514
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/119514/1/MPRA_paper_119514.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    salesforce compensation; inventory; salesperson;
    All these keywords.

    JEL classification:

    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:119514. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.