On the value of relative comparisons in firms

Abhijit Ramalingam

Economics Letters, 2014, vol. 124, issue 3, 446-448

Abstract: In a principal–agent model, we find that firms may not always benefit from the relative concerns of agents if such concerns are heterogeneous. Further, accounting for the influence of the environment on such concerns, profits are reduced relative to the no-comparisons benchmark.

Keywords: Comparisons; Incentives; Context-dependence; Profits (search for similar items in EconPapers)
JEL-codes: D86 L14 M52 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:124:y:2014:i:3:p:446-448

DOI: 10.1016/j.econlet.2014.07.013

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