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Intra-firm Conflicts and Interfirm Competition

Werner Güth (), Kerstin Pull and Manfred Stadler

No 2009-007, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: We study interaction effects between intra-firm conflicts and interfirm competition on a duopolistic market with seller firms employing one or more agents and implementing tournament incentives. We show that inter-firm competition leads to higher incentive intensity, higher efforts and output levels but lower profits.

Keywords: Tournament; Worker compensation; Strategic competition (search for similar items in EconPapers)
JEL-codes: C72 L22 M52 (search for similar items in EconPapers)
Date: 2009-01-30
New Economics Papers: this item is included in nep-bec, nep-com, nep-cse, nep-cta and nep-mic
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Working Paper: Intrafirm conflicts and interfirm competition (2011) Downloads
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