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On the choice of incentives in firms: influence activity, monitoring technology and organizational structure

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  • Marco Delmastro

    (Autorità Garante della Concorrenza e del Mercato)

Abstract

Economists have offered a number of explanations on the introduction of monetary incentives within firms. These range from the classical agency model to the impact exerted by factors such as monitoring technology, influence activity and organizational structure. Numerous empirical contributions have recently provided evidence on part of this literature, especially as concerned the trade-off between incentives and insurance. However there is still much to do in order to offer a complete picture of firm's incentive system. The purpose of this paper is to provide a test to factors that have been usually underrepresented in empirical work but that may be key in favoring or inhibiting the introduction of performance bonuses.

Suggested Citation

  • Marco Delmastro, 2002. "On the choice of incentives in firms: influence activity, monitoring technology and organizational structure," Economics Bulletin, AccessEcon, vol. 12(2), pages 1-13.
    • Handle: RePEc:ebl:ecbull:eb-01l20002
    as

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    File URL: http://www.accessecon.com/pubs/EB/2002/Volume12/EB-01L20002A.pdf
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    References listed on IDEAS

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    Cited by:

    1. Luis Otávio Façanha & Marcelo Resende, 2006. "Hierarchical Structure in Brazilian Industrial Firms: an Econometric Study," Economics Working Papers ECO2006/1, European University Institute.

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    More about this item

    Keywords

    influence activity;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • D2 - Microeconomics - - Production and Organizations

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