Course material:

Financial Incentives

Lecture 

Financial Incentives

 

 

 

Games Played in Class

Market for MBA Graduates with Product Valuation

Market for MBA Graduates with Additive Valuation

Moral Hazard Work Effort Not Observed

Product Development Incomplete Information

Product Development Full Information

 

Reading

 

 

1.      Gayle, George-Levi and Robert A. Miller "Has moral hazard become a more important factor in managerial compensation?", The American Economic Review, Vol. 99, No. 5, pp. 1740-1769. December 2009.

 

2.      “Talking about research on Executive Compensation”, Robert Miller, Tepper School of Business, Carnegie Mellon University, 2010.

 

3.      Deal-Making CEOs: Maybe Not As Bullish As They Seem (WSJ blog, 12/04/13)

 

4.      Microsoft Sets New CEO's Pay at $1.2 Million (WSJ, 02/04/14)

 

5.      The Board’s Role in Managing Risk and Corporate Governance (WSJ, 12/30/13)

 

6.      Why Amazon pays employees $5,000 to quit (CBS News, 04/11/14)