منابع مشابه
Self - Sabotage ∗
We analyze the incentives of a vertically-integrated producer (VIP) to engage in “self-sabotage”. Self-sabotage occurs when a VIP intentionally increases its upstream costs and/or reduces the quality of its upstream product. We identify conditions under which self-sabotage is profitable for the VIP even though it raises symmetrically the cost of the upstream product to all downstream producers ...
متن کاملDynamically Sabotage-Proof Tournaments
This paper explores the consequences of sabotage for the design of incentive contracts. The possibility of sabotage gives rise to a dynamic concern, similar to the Ratchet effect, which distorts the agents’ incentives. We first show that the mere possibility of sabotage may make it impossible to implement the first-best effort, and then offer two distinct incentive schemes, fast track and late ...
متن کاملIncentives for Sabotage in Vertically - Related Industries
We show that the incentives a vertically integrated supplier may have to disadvantage or “sabotage” the activities of downstream rivals vary with both the type of sabotage and the nature of downstream competition. Cost-increasing sabotage is typically profitable under both Cournot and Bertrand competition. In contrast, demand-reducing sabotage is often profitable under Cournot competition, but ...
متن کاملSabotage in Promotion Tournaments
This article studies the nature, determinants, and impact of “negative” activities in organizations. In competing for promotion, the members in organizations can work not only to enhance their own performances, but also to “sabotage” their opponent’s performances. It is worthwhile for them to engage in negative activities because promotion is generally based on relative, rather than absolute, p...
متن کاملGames for Learning: A Sabotage Approach
In formal approaches to inductive learning, the ability to learn is understood as the ability to single out a correct hypothesis from a range of possibilities. Although most of the existing research focuses on the characteristics of the learner, in many paradigms the significance of the teacher’s abilities and strategies is in fact undeniable. Motivated by this observation, in this paper we hig...
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ژورنال
عنوان ژورنال: Mechanical Engineering
سال: 2002
ISSN: 0025-6501,1943-5649
DOI: 10.1115/1.2002-sep-1