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Evaluate the Effectiveness of Manager Compensation

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  • Cheng-Feng Cheng

    (Department of International Business, Asia University, Taiwan)

Abstract

This study develops a conceptual model for compensation from firm and manager perspectives. We identify the negotiating range for a compensation plan and adopt a dynamic bargaining game to optimize the equilibrium of base salary and bonus.

Suggested Citation

  • Cheng-Feng Cheng, 2012. "Evaluate the Effectiveness of Manager Compensation," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 11(1), pages 25-44, June.
    • Handle: RePEc:ijb:journl:v:11:y:2012:i:1:p:25-44
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    References listed on IDEAS

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    Cited by:

    1. Shahryar Gheibi, 2020. "Low-Cost-Driven Leadership: A Theory for Price Dispersion in Competitive Markets," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 19(1), pages 61-76, June.

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    More about this item

    Keywords

    game theory; optimization; compensation; negotiation; risk analysis;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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