JOURNAL ARTICLE

Profit sharing with a contest among agents.

  • Published In: Managerial & Decision Economics, 2023, v. 44, n. 1. P. 244 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Wang, Chong; Zheng, Mingli 3 of 3

Abstract

We consider how an internal competition in the form of a contest among agents can be combined with profit sharing in team production. The principal can choose to share between the principal and the agents as well as the sharing rule with a competitive contest among the agents. We show that under some conditions, a pure strategy equilibrium of profit sharing exists. In equilibrium, internal sharing involves a contest that is more competitive than proportional sharing, and the principal can get higher profit compared to proportional sharing. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Managerial & Decision Economics. 2023/01, Vol. 44, Issue 1, p244
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2023
  • ISSN:0143-6570
  • DOI:10.1002/mde.3677
  • Accession Number:160812468
  • Copyright Statement:Copyright of Managerial & Decision Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Looking to go deeper into this topic? Look for more articles on EBSCOhost.