Question
What is incentive compatible compensation and how does it solve the principal agent problem? Under what conditions would the principal find it difficult to structure
What is incentive compatible compensation and how does it solve the principal agent problem? Under what conditions would the principal find it difficult to structure such a compensation contract? Explain with an example of incentive compatible compensation.
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Economics of Managerial Decisions
Authors: Roger Blair, Mark Rush
1st edition
134166167, 978-0134166162, 9780134140773 , 978-0133548235
