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On the choice of incentives in firms: influence activity, monitoring technology and organizational structure

Marco Delmastro ()

Economics Bulletin, 2002, vol. 12, issue 2, 1-13

Abstract: Economists have offered a number of explanations on the introduction of monetary incentives within firms. These range from the classical agency model to the impact exerted by factors such as monitoring technology, influence activity and organizational structure. Numerous empirical contributions have recently provided evidence on part of this literature, especially as concerned the trade-off between incentives and insurance. However there is still much to do in order to offer a complete picture of firm's incentive system. The purpose of this paper is to provide a test to factors that have been usually underrepresented in empirical work but that may be key in favoring or inhibiting the introduction of performance bonuses.

Keywords: influence; activity (search for similar items in EconPapers)
JEL-codes: L2 D2 (search for similar items in EconPapers)
Date: 2002-01-22
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