English, Article, Journal or magazine article edition: Incentives, Identity, and Organizational Forms Kohei Daido

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Bookmark: http://trove.nla.gov.au/version/104572
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Incentives, Identity, and Organizational Forms
Author
  • Kohei Daido
Physical Description
  • preprint
Notes
  • Abstract This paper studies the optimal organizational form and the optimal type of manager by considering the nonmaterial (psychological) payoff as well as the standard material payoff for agents. I compare two organizational forms: T-form, where all agents have the same job title so that they are in a single reference group; and H-form, where one agent is appointed to be the manager and the others are subordinates who form a reference group. I show that the principal should appoint a more (less) able agent to be the manager when the effects of peer pressure are more (less) critical. In addition, I find the conditions under which H-form is more likely to be preferred to T-form. Finally, I discuss the phenomenon of the proliferation of job titles in the context of this model.
  • Principal-agent Model, Multiagents, Moral Hazard, Reference Group, Peer Pressure, Identity, Proliferation of Job Titles.
  • RePEc:kgu:wpaper:47
Language
  • English
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