Question
a) Is it a good idea to have a junior clerk in a bank on an incentive contract? Is it a good idea to have
a)
Is it a good idea to have a junior clerk in a
bank on an incentive contract? Is it a good idea to
have the chief executive officer of a bank on an incentive contract? Why or why not?
[8 marks]
(b)
Which model, Cournot or Bertrand, do you think provides a better approximation to competition
in each
of the following industries: steel manufacturing, hotels, insurance. Why?
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Macroeconomics Principles And Policy
Authors: William J. Baumol, Alan S. Blinder
11th Edition
0324586213, 978-0324586213
