Economics at your fingertips  

Managerial Collusive Behavior under Asymmetric Incentive Schemes

Guigou Jean-Daniel () and Patrick de Lamirande ()
Additional contact information
Guigou Jean-Daniel: Luxembourg School of Finance, University of Luxembourg, Walferdange, Luxembourg

The B.E. Journal of Theoretical Economics, 2015, vol. 15, issue 2, 333-350

Abstract: We analyze the effects of asymmetry in incentive contracts on the possibility of collusion between managers. When their compensation is based on the relative performance evaluation contracts, managers can achieve better outcomes by colluding. Using the concept of balanced temptation introduced by Friedman (1971), we find that asymmetry in incentives increases the likelihood of collusion. The result contradicts the general wisdom that asymmetries make collision harder to maintain.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from

DOI: 10.1515/bejte-2014-0079

Access Statistics for this article

The B.E. Journal of Theoretical Economics is currently edited by Burkhard C. Schipper

More articles in The B.E. Journal of Theoretical Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

Page updated 2023-06-15
Handle: RePEc:bpj:bejtec:v:15:y:2015:i:2:p:333-350:n:12