About this document
Hart MarketMechanismIncentive 1983 by Emmi Zhang is a document available to read on EtoBox.
The document discusses the relationship between competition in product markets and managerial slack, arguing that competition reduces inefficiencies caused by managers pursuing personal goals rather than profit maximization. It presents a model where two types of firms exist: entrepreneurial firms that maximize profits and managerial firms that may not, due to conflicts of interest. The analysis concludes that while competition can lower managerial slack, it does not completely eliminate it, and suggests th
- Author
- Emmi Zhang
- Language
- EN