English, Article edition: A Theory of Sales Quotas with Limited Liability and Rent Sharing. Oyer, Paul

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Bookmark: http://trove.nla.gov.au/version/196366
Physical Description
  • article
Language
  • English

Edition details

Title
  • A Theory of Sales Quotas with Limited Liability and Rent Sharing.
Author
  • Oyer, Paul
Physical Description
  • article
Notes
  • Sales quotas are a fixture of sales compensation plans and are often associated with a significant discrete bonus. This paper shows that, under certain assumptions about salesperson utility and the distribution of sales outcomes, the optimal compensation is a discrete bonus for meeting a sales quota. The results are similar when the assumption of agent risk neutrality is relaxed. The model has implications for many moral hazard problems where the agent has a liability limitation and job-specific skill. Copyright 2000 by University of Chicago Press.
  • RePEc:ucp:jlabec:v:18:y:2000:i:3:p:405-26
Language
  • English
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