Salesforce Compensation Plans in Environments with Asymmetric Information

In this paper, we present a theory of salesforce compensation plans to provide insights into why it may be advantageous for a profit maximizing firm to offer members of its salesforce the opportunity to choose from a menu of compensation plans. Although such contractual arrangements are not commonly...

Ausführliche Beschreibung

Bibliographische Detailangaben
Veröffentlicht in:	Marketing Science. - Institute for Operations Research and the Management Sciences. - 5(1986), 3, Seite 179-198
1. Verfasser:	Lal, Rajiv (VerfasserIn)
Weitere Verfasser:	Staelin, Richard
Format:	Online-Aufsatz
Sprache:	English
Veröffentlicht:	1986
Zugriff auf das übergeordnete Werk:	Marketing Science
Schlagworte:	Salesforce Compensation Plans Agency-Theory Information Asymmetry Economics Business Applied sciences Behavioral sciences Mathematics


LEADER	01000caa a22002652 4500
001	JST056346816
003	DE-627
005	20240622022634.0
007	cr uuu---uuuuu
008	150324s1986 xx \|\|\|\|\|o 00\| \|\|eng c
035			\|a (DE-627)JST056346816
035			\|a (JST)183831
040			\|a DE-627 \|b ger \|c DE-627 \|e rakwb
041			\|a eng
100	1		\|a Lal, Rajiv \|e verfasserin \|4 aut
245	1	0	\|a Salesforce Compensation Plans in Environments with Asymmetric Information
264		1	\|c 1986
336			\|a Text \|b txt \|2 rdacontent
337			\|a Computermedien \|b c \|2 rdamedia
338			\|a Online-Ressource \|b cr \|2 rdacarrier
520			\|a In this paper, we present a theory of salesforce compensation plans to provide insights into why it may be advantageous for a profit maximizing firm to offer members of its salesforce the opportunity to choose from a menu of compensation plans. Although such contractual arrangements are not commonly used in the industry, they have been introduced and implemented by firms such as IBM and St. Regis Paper. As in our previous work on salesforce compensation plans (Basu, Lal, Srinivasan, and Staelin 1985) we use an agency-theory framework. In this paper, we relax the assumptions of information symmetry and salesforce homogeneity and show the conditions under which it is optimal to offer a menu of compensation plans. We also show that even when these assumptions are relaxed there are situations where offering a single plan characterized by Basu, Lal, Srinivasan, and Staelin (1985) is still optimal. Insights gained from the analyses are discussed in the context of an existing compensation scheme.
540			\|a Copyright 1986 The Institute of Management Sciences and Operations Research Society of America
650		4	\|a Salesforce Compensation Plans
650		4	\|a Agency-Theory
650		4	\|a Information Asymmetry
650		4	\|a Economics \|x Economic disciplines \|x Labor economics \|x Employment \|x Occupations \|x Service industry employees \|x Sales personnel
650		4	\|a Business \|x Business administration \|x Business management \|x Sales management
650		4	\|a Applied sciences \|x Computer science \|x Computer programming \|x Mathematical programming \|x Nonlinear programming \|x Objective functions
650		4	\|a Business \|x Business operations \|x Commerce \|x Pricing \|x Prices \|x Reservation prices
650		4	\|a Behavioral sciences \|x Behavioral economics \|x Contract theory \|x Information asymmetry
650		4	\|a Business \|x Business administration \|x Business management \|x Sales management \|x Sales territory
650		4	\|a Economics \|x Economic disciplines \|x Financial economics \|x Finance \|x Financial analysis \|x Risk management \|x Risk aversion
650		4	\|a Mathematics \|x Mathematical values \|x Critical values \|x Extrema \|x Mathematical optima
650		4	\|a Business \|x Business operations \|x Commerce \|x Sales \|x Conditional sales
650		4	\|a Economics \|x Microeconomics \|x Economic utility \|x Expected utility
655		4	\|a research-article
700	1		\|a Staelin, Richard \|e verfasserin \|4 aut
773	0	8	\|i Enthalten in \|t Marketing Science \|d Institute for Operations Research and the Management Sciences \|g 5(1986), 3, Seite 179-198 \|w (DE-627)320627799 \|w (DE-600)2023536-7 \|x 1526548X \|7 nnns
773	1	8	\|g volume:5 \|g year:1986 \|g number:3 \|g pages:179-198
856	4	0	\|u https://www.jstor.org/stable/183831 \|3 Volltext
912			\|a GBV_USEFLAG_A
912			\|a SYSFLAG_A
912			\|a GBV_JST
912			\|a GBV_ILN_11
912			\|a GBV_ILN_20
912			\|a GBV_ILN_22
912			\|a GBV_ILN_23
912			\|a GBV_ILN_24
912			\|a GBV_ILN_31
912			\|a GBV_ILN_32
912			\|a GBV_ILN_39
912			\|a GBV_ILN_40
912			\|a GBV_ILN_60
912			\|a GBV_ILN_62
912			\|a GBV_ILN_63
912			\|a GBV_ILN_65
912			\|a GBV_ILN_69
912			\|a GBV_ILN_70
912			\|a GBV_ILN_90
912			\|a GBV_ILN_95
912			\|a GBV_ILN_100
912			\|a GBV_ILN_110
912			\|a GBV_ILN_120
912			\|a GBV_ILN_152
912			\|a GBV_ILN_187
912			\|a GBV_ILN_224
912			\|a GBV_ILN_285
912			\|a GBV_ILN_374
912			\|a GBV_ILN_702
912			\|a GBV_ILN_2001
912			\|a GBV_ILN_2003
912			\|a GBV_ILN_2005
912			\|a GBV_ILN_2006
912			\|a GBV_ILN_2007
912			\|a GBV_ILN_2008
912			\|a GBV_ILN_2009
912			\|a GBV_ILN_2010
912			\|a GBV_ILN_2011
912			\|a GBV_ILN_2014
912			\|a GBV_ILN_2015
912			\|a GBV_ILN_2018
912			\|a GBV_ILN_2020
912			\|a GBV_ILN_2021
912			\|a GBV_ILN_2026
912			\|a GBV_ILN_2027
912			\|a GBV_ILN_2034
912			\|a GBV_ILN_2044
912			\|a GBV_ILN_2048
912			\|a GBV_ILN_2050
912			\|a GBV_ILN_2055
912			\|a GBV_ILN_2056
912			\|a GBV_ILN_2057
912			\|a GBV_ILN_2059
912			\|a GBV_ILN_2061
912			\|a GBV_ILN_2065
912			\|a GBV_ILN_2068
912			\|a GBV_ILN_2106
912			\|a GBV_ILN_2107
912			\|a GBV_ILN_2108
912			\|a GBV_ILN_2111
912			\|a GBV_ILN_2112
912			\|a GBV_ILN_2113
912			\|a GBV_ILN_2118
912			\|a GBV_ILN_2122
912			\|a GBV_ILN_2129
912			\|a GBV_ILN_2143
912			\|a GBV_ILN_2147
912			\|a GBV_ILN_2148
912			\|a GBV_ILN_2152
912			\|a GBV_ILN_2153
912			\|a GBV_ILN_2190
912			\|a GBV_ILN_2232
912			\|a GBV_ILN_2472
912			\|a GBV_ILN_2935
912			\|a GBV_ILN_2940
912			\|a GBV_ILN_2949
912			\|a GBV_ILN_2950
912			\|a GBV_ILN_4012
912			\|a GBV_ILN_4035
912			\|a GBV_ILN_4037
912			\|a GBV_ILN_4046
912			\|a GBV_ILN_4112
912			\|a GBV_ILN_4125
912			\|a GBV_ILN_4126
912			\|a GBV_ILN_4242
912			\|a GBV_ILN_4246
912			\|a GBV_ILN_4249
912			\|a GBV_ILN_4251
912			\|a GBV_ILN_4305
912			\|a GBV_ILN_4306
912			\|a GBV_ILN_4307
912			\|a GBV_ILN_4313
912			\|a GBV_ILN_4322
912			\|a GBV_ILN_4323
912			\|a GBV_ILN_4324
912			\|a GBV_ILN_4325
912			\|a GBV_ILN_4326
912			\|a GBV_ILN_4335
912			\|a GBV_ILN_4338
912			\|a GBV_ILN_4346
912			\|a GBV_ILN_4393
912			\|a GBV_ILN_4700
951			\|a AR
952			\|d 5 \|j 1986 \|e 3 \|h 179-198