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The design of information acquisition and sharing
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Migrow, Dimitri and Squintani, Francesco (2023) The design of information acquisition and sharing. Journal of Political Economy Microeconomics, 1 (4). pp. 710-745. doi:10.1086/726580 ISSN 2832-9368.
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Official URL: http://doi.org/10.1086/726580
Abstract
This paper investigates the optimal design of linear compensation schemes that incentivize information acquisition and sharing in multi-divisional organizations. When the information shared between divisions is highly correlated and the information acquisition costs are not too high, the optimal strategy for the headquarters manager is to implement a compensation scheme that links the remuneration of each division to the performance of the other division. However, if the information is weakly correlated or the cost of acquisition is prohibitively high, the most effective incentive is to tie each manager's remuneration solely to the performance of their own division.
Item Type: | Journal Article | ||||||||
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Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce |
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Divisions: | Faculty of Social Sciences > Economics | ||||||||
Library of Congress Subject Headings (LCSH): | Organizational change, Knowledge management, Business enterprises -- Decision making, Industrial organization (Economic theory), Business information services | ||||||||
Journal or Publication Title: | Journal of Political Economy Microeconomics | ||||||||
Publisher: | University of Chicago Press | ||||||||
ISSN: | 2832-9368 | ||||||||
Official Date: | November 2023 | ||||||||
Dates: |
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Volume: | 1 | ||||||||
Number: | 4 | ||||||||
Page Range: | pp. 710-745 | ||||||||
DOI: | 10.1086/726580 | ||||||||
Status: | Peer Reviewed | ||||||||
Publication Status: | Published | ||||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||||
Copyright Holders: | © 2023 The University of Chicago. All Rights reserved. | ||||||||
Date of first compliant deposit: | 8 August 2023 |
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