Asset specificity is usually considered to be an argument for vertical integration.The main idea is that specificity induces opportunistic behaviour, and that vertical integration reduces this problem of opportunism. In ...

Reward systems based on balanced scorecards typically connect pay to an index, i.e. a weighted sum of multiple performance measures. However, there is no formal incentive model that actually describe this kind of index ...

The extent to which a knowledge-intensive firm should induce cooperation between its employees is analyzed in a model of relational contracting between a firm (principal) and its employees (two agents). The agents can ...

The economics of crime and punishment postulates that higher punishment leads to lower crime levels, or less severe crime. It is how- ever hard to get empirical support for this rather intuitive relationship. This paper ...

In the international offshore industry we find that the oil companies and their main suppliers usually enjoy separate ownership. But the main contractors manage a capital stock, and produce inputs, that are highly specific ...

We analyze a repeated principal-agent trust game where the principal makes a specific investment by paying the agent up-front, expecting an agreed upon quality level in return. The verifiability of the agent’s action is ...

This paper examines a self-enforced relational incentive contract between a risk neutral principal and a risk averse agent where the agent's human capital is essential in ex post realization of values. I analyse the effect ...

We analyze optimal incentive contracts in a model where the probability of court enforcement is determined by the costs spent on contracting. We show that contract costs matter for incentive provision, both in static spot ...

Formålet med denne utredningen er å sammenligne prestasjonslønn og fastlønn med tanke på hvorvidt de ansatte presterer ulikt ut i fra hvordan de blir lønnet. Vi har derfor foretatt en komparativ casestudie av to lønnssystemer ...