Horizontal Resource Sharing: A Principal-Agent Approach

Using a principle-agent modeling approach we examine how career competition between managers of strategic business units (SBUs) interacts with a variety of commission based compensation schemes for inter-SBU resource sharing. We analyze equilibrium behavior in both deterministic and, for the risk av...

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Bibliographic Details
Main Authors: Gupta, Anil K., SESHADRI, Sudhi
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 1994
Subjects:
Online Access:https://ink.library.smu.edu.sg/lkcsb_research/672
https://doi.org/10.5465/AMBPP.1994.10341636
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Institution: Singapore Management University
Language: English
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Summary:Using a principle-agent modeling approach we examine how career competition between managers of strategic business units (SBUs) interacts with a variety of commission based compensation schemes for inter-SBU resource sharing. We analyze equilibrium behavior in both deterministic and, for the risk averse manager, in stochastic environments.