Entry and Managerial Incentives: A Note

Juan Bárcena-Ruiz and Maria Paz Espinosa

Bulletin of Economic Research, 2000, vol. 52, issue 2, 175-80

Abstract: This note reinforces the results in a paper by Sen (1993). It is shown that his assumption that the incentive schemes in a two-period model are the same for the two periods is not necessary for the results: only the long-term nature of contracts with managers matters. Copyright 2000 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Date: 2000
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