Power of incentives in private versus public organizations

Article Abstract:

Government business enterprises and agencies are in some aspects similar to large private business enterprises. However, they are also different in other major aspects. One important difference is that public organizations are answerable to various principals, or are common agencies with many principals. A model of common agency is developed to explain how the relations among many principals lead to weak incentives. The model addresses moral hazard in which the agent's activities cannot be detected by the principals but every result can be detected by all.

Private companies, Government business enterprises, Public enterprises

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Strategic behavior in contests: reply

Article Abstract:

The probability of each player winning a prize in two-player asymmetric contests is zero, as revealed by an analysis on strategic behavior using Nash prediction variables. In the research, determination of second-order conditions was made possible by ensuring that the local stationary point used in the system is a maximum. The study also stressed that achieving a no local effect response does not necessarily mean that no global effect was observed.

Economics, Research and Development in the Social Sciences and Humanities, Equilibrium (Economics), Games of strategy (Mathematics)

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Clubs with entrapment

Article Abstract:

The advantages of adoption of new technologies and formation of new institutions in various countries are studied in context of formation of European Monetary Union.

Europe, Organizational history, Management dynamics, Venture Analysis, Management, Business enterprises, Technology, Company business management, Technology in education, Organization formation, European monetary union

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