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| Volume 11, No. 1,
June
2012 |
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Evaluate the Effectiveness of
Manager Compensation |
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Cheng-Feng Cheng |
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Department of International
Business, Asia University, Taiwan |
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| Abstract |
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This study develops a conceptual model
for compensation from firm and manager perspectives. We identify the
negotiating range for a compensation plan and adopt a dynamic
bargaining game to optimize the equilibrium of base salary and
bonus. |
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Key words:
game theory; optimization; compensation; negotiation; risk analysis |
| JEL
classification:
C73; J33; M12 |
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