Dynamic consistency in incentive planning with a material input

  • Hugh M. Neary
  • Published 2001

Abstract

An incentive model of a planner and two firm-types is presented, in which the planner assigns material input to the firms as part of the organization’s production plan. The optimal incentivecompatible one-period plan is described. This static plan is then shown to be not incentive-compatible in a dynamic (two-period) setting if the firm’s discount factor is… (More)

Topics

3 Figures and Tables