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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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- Fall '07
- 18 months, N Moore