Strategic incentives for market share

Robert Ritz

International Journal of Industrial Organization, 2008, vol. 26, issue 2, 586-597

Abstract: Market share objectives are prominent in many industries, especially where managers pay much attention to league table rankings. This paper explores the strategic rationale for giving managers incentives based on market share, motivated by evidence from executive compensation practice in the automotive and investment banking industries. Strategic incentives for market share dominate the well-known sales revenue contracts analyzed in much of the literature, but perhaps surprisingly also lead to less competitive outcomes. The more general lesson is that, when competing in strategic substitutes, players will wish to commit to aggressive conduct, but also make their behaviour less manipulable by rivals.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (75)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167-7187(07)00053-7
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Strategic incentives for market share (2005)
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: https://EconPapers.repec.org/RePEc:eee:indorg:v:26:y:2008:i:2:p:586-597

Access Statistics for this article

International Journal of Industrial Organization is currently edited by P. Bajari, B. Caillaud and N. Gandal

More articles in International Journal of Industrial Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().