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The Effective Design of Managerial Incentive Systems:Combining Theoretical Principles and Practical Trade'-offs

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  • Alessandro Rossi

Abstract

On the use of theoretical developments in agency economics for the practical design of incentive- and performance-based compensation systems.

Suggested Citation

  • Alessandro Rossi, 2001. "The Effective Design of Managerial Incentive Systems:Combining Theoretical Principles and Practical Trade'-offs," Quaderni DISA 047, Department of Computer and Management Sciences, University of Trento, Italy, revised 29 Jun 2003.
    • Handle: RePEc:trt:disatr:047
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    2. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-1158, December.
    3. Martin L. Weitzman, 1980. "The "Ratchet Principle" and Performance Incentives," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 302-308, Spring.
    4. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
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    6. Barron, John M & Gjerde, Kathy Paulson, 1997. "Peer Pressure in an Agency Relationship," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 234-254, April.
    7. Lazear, Edward P, 1986. "Salaries and Piece Rates," The Journal of Business, University of Chicago Press, vol. 59(3), pages 405-431, July.
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    10. Myerson, Roger B., 1982. "Optimal coordination mechanisms in generalized principal-agent problems," Journal of Mathematical Economics, Elsevier, vol. 10(1), pages 67-81, June.
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    13. Barry W. Ickes & Larry Samuelson, 1987. "Job Transfers and Incentives in Complex Organizations: Thwarting the Ratchet Effect," RAND Journal of Economics, The RAND Corporation, vol. 18(2), pages 275-286, Summer.
    14. Dearden, James & Ickes, Barry W & Samuelson, Larry, 1990. "To Innovate or Not to Innovate: Incentives and Innovation in Hierarchies," American Economic Review, American Economic Association, vol. 80(5), pages 1105-1124, December.
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    20. Alessandro Rossi, 1999. "Incentives in Managerial Compensation: A Survey of Experimental Research. (Draft Paper)," ROCK Working Papers 003, Department of Computer and Management Sciences, University of Trento, Italy, revised 12 Jun 2008.
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