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Unformatted text preview: Assume: o A group of Q identical team members o They agree to product and share their output equally (ex. communism, sales teams, group projects, families, shareholders, etc.) Principle Agent Problems An owner decides how much profit versus amenities How does the new owner induce the CEO to increase profits? o Production bonuses o Equity (stock options) o Reduce short term behavior o Induce overly risky behavior...
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This note was uploaded on 11/19/2007 for the course PAM 2000 taught by Professor Evans,t. during the Fall '07 term at Cornell University (Engineering School).
- Fall '07