Should You Allow Your Agent to Become Your Competitor? On Non-Compete Agreements in Employment Contracts
نویسندگان
چکیده
Should You Allow Your Agent to Become Your Competitor? On Non-Compete Agreements in Employment Contracts We discuss a principal-agent model in which the principal has the opportunity to include a non-compete agreement in the employment contract. We show that not imposing such an agreement can be beneficial for the principal as the possibility to leave the firm generates implicit incentives for the agent. The principal prefers to impose such a clause if and only if the value created is sufficiently small relative to the agent’s outside option. If the principal can use an option contract for retaining the agent, she will never prefer a strict non-compete agreement. JEL Classification: D21, D86, J3, K1, M5
منابع مشابه
قانون طلایی تدارک حمایت از دانش آموزان با نیازهای ویژه در کلاسهای فراگیر: از دیگران آنطور حمایت کنید که دوست دارید از شما حمایت کنند
Consider for a moment that the school system paid someone to be with you supporting you 8 hours a day, 5 days a week. Now, imagine that you had no say over who that support person was or how she or he supported you. Or imagine that someone regularly stopped into your place of employment to provide you with one-on-one support. This person was present for all your interactions, escorted you to th...
متن کاملP35: How to Manage Anxiety
Anxiety is a mental state that is elicited in anticipation of threat or potential threat. Sensations of anxiety are a normal part of human experience, but excessive or inappropriate anxiety can become an illness. Anxiety is part of the normal human experience. We may speculate that it served human survival during evolution by enhancing preparedness and alertness. However, anxious manifestations...
متن کاملP14: How to Find a Talent?
Talents may be artistic or technical, mental or physical, personal or social. You can be a talented introvert or a talented extrovert. Learning to look for your talents in the right places and building those talents into skills and abilities might take some work, but going about it creatively will let you explore your natural abilities and find your innate talents. You’re not going to fin...
متن کاملمدیر موفق کیست؟
Who is a really successful manager? A manager who spends less money, or the one who earns more? A manager who can survive for a longer period of time, or an administrator who expands his organization, and opens up new branches? Which one is the most successful? The article tries to answer these questions and provides, some simple guidlines for the managers in every domain of management who wan...
متن کاملOnm-21: General Principles of Collecting and Storing Cord Blood Stem Cell
Cord blood is the blood that remains in the umbilical cord and placenta following birth, which is usually discarded It contains red blood cells, white blood cells, platelets, and plasma, like blood. In addition, cord blood is a rich source of stem cells that may have potentially lifesaving benefits for your baby and family. The cord blood of baby serves as an abundant source of stem cells. Thes...
متن کامل