On the value of relative comparisons in firms

Abhijit Ramalingam

Research output: Contribution to journalArticle

3 Citations (Scopus)

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 languageEnglish
Pages (from-to)446-448
Number of pages3
JournalEconomics Letters
Volume124
Issue number3
Early online date17 Jul 2014
DOIs
Publication statusPublished - Sep 2014

Keywords

  • Comparisons
  • Incentives
  • Context-dependence
  • Profits

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