Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5069868 | Finance Research Letters | 2010 | 6 Pages |
Abstract
Cost heterogeneity is an important source of performance disparity among firms. This heterogeneity conditions the strategic decisions that firms make in the product market and can lead to heterogeneity in the design of managerial compensation contracts. I investigate the effect of cost heterogeneity in a strategic product market environment where firms compete à la Cournot. The paper offers new predictions on how executive compensation contracts that account for relative performance must be adjusted for cost differences.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ana Albuquerque,