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The target-incentive system vs. the price-incentive system under adverse selection and the ratchet effect

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  • Zou, L.

    (Tilburg University, School of Economics and Management)

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  • Zou, L., 1991. "The target-incentive system vs. the price-incentive system under adverse selection and the ratchet effect," Other publications TiSEM fd7efcb1-2cf3-42e0-b6a4-f, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:fd7efcb1-2cf3-42e0-b6a4-f0c0b86f64b1
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    File URL: https://pure.uvt.nl/ws/portalfiles/portal/5366293/ZL5612784.pdf
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    References listed on IDEAS

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    1. Holmstrom, Bengt & Milgrom, Paul, 1987. "Aggregation and Linearity in the Provision of Intertemporal Incentives," Econometrica, Econometric Society, vol. 55(2), pages 303-328, March.
    2. Laffont, Jean-Jacques & Tirole, Jean, 1988. "The Dynamics of Incentive Contracts," Econometrica, Econometric Society, vol. 56(5), pages 1153-1175, September.
    3. J. A. Mirrlees, 1971. "An Exploration in the Theory of Optimum Income Taxation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(2), pages 175-208.
    4. Eric Maskin & John Riley, 1984. "Monopoly with Incomplete Information," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 171-196, Summer.
    5. Holmstrom, Bengt, 1982. "Design of incentive schemes and the new Soviet Incentive model," European Economic Review, Elsevier, vol. 17(2), pages 127-148.
    6. Harris, Milton & Raviv, Artur, 1979. "Optimal incentive contracts with imperfect information," Journal of Economic Theory, Elsevier, vol. 20(2), pages 231-259, April.
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    Cited by:

    1. Dillen, Mats & Lundholm, Michael, 1996. "Dynamic income taxation, redistribution, and the ratchet effect," Journal of Public Economics, Elsevier, vol. 59(1), pages 69-93, January.
    2. Arthur Selender & Liang Zou, 1994. "Limited liability and the underlying-asset constraint: on the use of share-derivative contracts to resolve agency problems," Journal of Economics, Springer, vol. 59(2), pages 149-166, June.
    3. Liang Zou, 1992. "Threat-Based Implementation of Incentive Compatible Mechanisms," Annals of Economics and Statistics, GENES, issue 25-26, pages 189-204.
    4. Joaquim Vergés, 2010. "Incentive schemes for executive officers when forecasts matter," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 339-352.
    5. Iny Hwang & Youngsoo Kim & Michael K. Lim, 2023. "Optimal Ratcheting in Executive Compensation," Decision Analysis, INFORMS, vol. 20(2), pages 166-185, June.

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