On the Value of Relative Comparisons in Firms

Abhijit Ramalingam

On the Value of Relative Comparisons in Firms

Abhijit Ramalingam

School of Economics

Research output: Working paper

Abstract

In a principal-agent model, we find that firms may not always benefit from the relative concerns of agents if such concerns are heterogeneous. Further, accounting for the influence of the environment on such concerns, profits are reduced relative to the no-comparisons benchmark.

Original language	English
Publication status	Unpublished - 2014

Cite this

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title = "On the Value of Relative Comparisons in Firms",

abstract = "In a principal-agent model, we find that firms may not always benefit from the relative concerns of agents if such concerns are heterogeneous. Further, accounting for the influence of the environment on such concerns, profits are reduced relative to the no-comparisons benchmark.",

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year = "2014",

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BT - On the Value of Relative Comparisons in Firms

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