TY - JOUR
T1 - The Ratchet principle
T2 - A diagrammatic interpretation
AU - Darvish, Tikva
AU - Kahana, Nava
PY - 1987/6
Y1 - 1987/6
N2 - Using a two-period graphic model it is shown that the Soviet fixed incentive scheme does not function, even under conditions of certainty. Allowing the incentive coefficient to change over time will not necessarily induce the manager to work efficiently. Only when the target is feasible for both periods will a flexible incentive scheme function.
AB - Using a two-period graphic model it is shown that the Soviet fixed incentive scheme does not function, even under conditions of certainty. Allowing the incentive coefficient to change over time will not necessarily induce the manager to work efficiently. Only when the target is feasible for both periods will a flexible incentive scheme function.
UR - http://www.scopus.com/inward/record.url?scp=45949116239&partnerID=8YFLogxK
U2 - 10.1016/0147-5967(87)90097-7
DO - 10.1016/0147-5967(87)90097-7
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AN - SCOPUS:45949116239
SN - 0147-5967
VL - 11
SP - 245
EP - 249
JO - Journal of Comparative Economics
JF - Journal of Comparative Economics
IS - 2
ER -